Handling Larger Inventory Orders (With the Right Facility)

The Problem

Our client, a rapidly growing apparel wholesaler, encountered a challenge that most successful entrepreneurs are familiar with – Cash flow couldn’t keep up with rising demand for their products.

The bottleneck complicated their ability to scale sales channels and grow as a whole. At the time, their existing credit facility wasn’t substantial enough to support their operations, and their bank wasn’t willing to offer an overadvance.

How National Business Capital Helped

Our Business Finance Advisor reached out to learn more about their challenge. After reviewing the financials, it was clear that the business qualified for a more substantial credit facility despite their bank’s denial.

Tightening credit conditions force banks to become even more cautious than their notoriously risk-averse traditional behavior, which likely contributed to the client’s bank’s decision, if not entirely. Still, business doesn’t stop just because the prime rate is at the highest percentage since 2001, and our client wasn’t ready to give up on their growth plan.

Through our longstanding lender relationships, we connected the client with a $7 million revolving credit facility separate from their bank line and a $4 million term loan, bringing the total financing to $11 million in combined capital.

Where They Are Today

A new level of purchasing power positioned the client’s business for massive growth. They can keep up with inventory orders as they grow over time while preserving cash flow for revenue-driving opportunities, sudden expenses, and other costs along their growth journey.