Republic Business Credit provided a non-recourse $3 million factoring facility alongside a $400,000 inventory facility to U.S.-based men’s apparel manufacturer.
When a New York-based investment bank referred a recently closed buy-side engagement, Republic provided a facility to help the company realize its quadrupling revenue growth strategy over the next 12 months. The client sought its first debt facility from a partner that knew the apparel industry, its current landscape and who would enable the business to lean into its likely success being a wholly “Made-In-USA” manufacturer.
The client provides wholesale and private labeling to both large and independent retailers throughout the U.S. The client is a long-tenured brand that was recently acquired in the Mid-South region to compete with the traditional East & West Coast providers.
The non-recourse credit protection was important to the client as the daily trends in the retail industry can cause additional concerns for manufacturers with long lead times. The client needed to leverage their outstanding purchase orders and inventory to help fulfill the backlog in 2018 and 2019. Republic met this need by providing a flexible seasonal over-advance on their confirmed orders to help keep pace with their demand.
“We are proud to support U.S.-based manufacturing companies that provide an excellent product into major and independent retailers,” said Robert Meyers, President of Republic. “As a commercial finance company, we are excited to assist companies that support jobs in the southern region. We have strong relationships in the manufacturing and apparel arena, and our partners trust us to provide the correct growth capital facility for their clients.”
