Fast AR Funding provided a $150,000 selective recourse factoring facility without any contracts, minimums or start-up fees to a West Coast apparel brand that needed a factoring partner to support its growth in 2020. The apparel brand sought a financial partner that didn’t have any minimums, contracts or set-up fees. As retailers reopen at different capacity levels across the country, the apparel brand wanted the freedom and flexibility to submit invoices only when it needed an advance. While the flexibility was required, it additionally wanted to avoid fees for months when it was unable to ship to a retailer, although the brand expects to have a strong holiday season.
The company designs and works with local screen printers to manufacture graphic design T-shirts. The brand is currently private labeling its products through a U.S. retailer with an e-commerce platform, and is looking to launch its own premium brand during the holiday season. The company’s entrepreneur leveraged her connections through existing retailers and throughout the screen-printing arena and sought a partner that was able to provide support during the summer and holiday seasons.
The brand needed the ability to pay its screen printers prior to receiving payment from the U.S. retailer, and chose Fast AR Funding to bridge the working capital deficit. As purchase orders continue to pick up, the brand is hoping that the spot factoring solution will help manage costs during these early growth stages. The added value of getting its cash now rather than waiting for three months provides the opportunity to drive sales while keeping up with suppliers.
“We are here to support all industries of course, but it is always great to see our immediate benefit as a brand can grow without having to worry about when large retailers will pay their bills,” Micaella Poole, portfolio manager for Fast AR Funding, said.
