Modern Sprout, a Chicago-based garden design shop and manufacturer, secured a $5 million asset-based loan with Republic Business Credit at the close of 2023 after the firm outgrew its current lender. Modern Sprout is a company within the “grow-your-own” movement, combining hydroponic growing technology with sustainable indoor and outdoor garden solutions.
In 2023, Modern Sprout learned that its current lending partner would not be able to support the company’s future growth plans, so it needed a new partner that could not only accelerate its borrowing capabilities but truly understand the seasonal needs of an omnichannel, founder-led business. Republic was that partner, stepping up with an ABL facility that made additional inventory funding possible during Modern Sprout’s low season.
Modern Sprout was connected to Republic by several Midwestern referral sources due to its reputation across the food, beverage, apparel and consumer packaged goods industries. Those introductions came from a national consulting firm, investment bank and regional commercial bank that were all looking to find ways to support Modern Sprout.
The $5 million ABL from Republic Business Credit provided additional availability on Modern Sprout’s inventory and e-commerce sales during its seasonal ramp periods.
“Republic’s experience in the CPG industry and strong grasp of e-commerce channels made us an excellent partner for Modern Sprout,” Eric Dorner, vice president in Republic Business Credit’s Chicago office, said. “We are excited to support the continued growth of this company that has reinvented its industry and made at-home gardening more accessible to every consumer.”
“It is our mission to connect people and plants through our unique products and solutions,” Sarah Burrows, co-founder of Modern Sprout, said. “That is an ambitious purpose that requires us to grow quickly and be adaptable to the market. Republic’s services have allowed us not only to succeed, but to exceed our goals.”
“We were so impressed with the entire Modern Sprout team, and it is great when we can provide a working capital facility to people who are truly passionate about their work,” Robert Meyers, president of Republic Business Credit, said. “The team, including Sarah Burrows, Nick Behr, Kim Chisholm, Allison Hammer, Danielle Kurtz, Chris Todd, Tony Wesley and Jessica Amata, provided us with confidence in the long-term success of this founder-led company in Chicago’s West Loop.”
