Republic Business Credit provided a non-borrowing, traditional factoring facility to a California-based fabric manufacturer that sought a factoring partner that could fully approve its customers. The facility from Republic Business Credit helped reduce the company’s payment risk.
The company, established in 2020, is the most recent endeavor launched by another one of Republic Business Credit’s long-term clients in the apparel industry. In fact, Republic Business Credit had previously provided a factoring facility to the brands’ parent company.
The company did not require a factoring partner throughout the COVID-19 pandemic because of its customer relationships and e-commerce platform. However, as the current retail environment continues to shift due to inflation, higher costs and inconsistent consumer demand, the company wanted the comfort of shipping to credit-approved retailers. It was especially important for the company to get approval on some of its larger retailers, such as Burlington Coat Factory and Ross Stores.
“I have been working with companies in the apparel space for years,” Tae Chung, senior vice president of business development for Republic Business Credit’s California office and manager of this deal, said. “Companies often need the flexibility of a factoring facility and reduced credit risk to stay competitive in the market. We are proud to support the company in this new partnership and look forward to helping them further advance.”
Republic Business Credit was able to approve 100% of the company’s customers and serve as an advisor through a challenging time in the market.
“We are always excited when our existing, successful relationships with clients lead us to new opportunities to work with businesses seeking similar solutions,” Matthew Begley, chief operating officer of Republic Business Credit, said. “We are confident that our facility will help this company reach its goals and continue to be a dynamic and competitive player in the apparel space.”
