Republic Provides a $3.0m Direct to Consumer Facility for a Sponsor Owned Apparel Accessory Manufacturer

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Republic Business Credit partnered with a private equity fund to refinance their existing bank facility and provide more availability on their inventory

We have built our platform to help support companies that need a mix of scalable growth-orientated solutions across our asset-based lending, direct to consumer and factoring products.

When a private equity-owned west coast apparel accessory manufacturer needed more availability and additional liquidity from their loan facility, they chose Republic Business Credit to accelerate their growth through the pandemic. Republic provided a growth-orientated facility that gives availability on inventory, merchant accounts and direct to consumer proceeds. The apparel manufacturer welcomed the opportunity to fully leverage their inventory without a restriction or cap in relation to their accounts receivables as a traditional asset-based loan would structure. The private equity fund operator shared with Republic, “The comfort of having a strategic partner during a recession that is comfortable with our pivot to e-commerce is invaluable, we would reduce shareholder value if our plans were tied solely around a wholesale strategy at the moment.”

The company manufactures and distributes licensed and branded apparel accessories including bags, wearables, and other wardrobe add-ons. The company typically finds itself in the moderate to premium categories and receives glowing customer reviews through Amazon. The company believes it is very well positioned for the post-COVID-19 transition, as they see a lot of upside in both the short and medium terms in their product category. Additionally, for the short-term, the company sees benefits arising from the current 'virtual world' as it allows a better centralization of their inventory and a positive impact on supply chains. Without the just in time demands of a wholesale strategy, the company is better positioned to time launches and partnerships through their eCommerce and direct to consumer offerings. In the longer term, the company will look to expand its relationships with the licensees to add-on related category products to the same target customers, thus increasing their wallet share and more repeat purchase opportunities.

Republic provided a $3.0m direct to consumer inventory loan facility that provides significant availability on their inventory, accounts receivables, merchant accounts and eCommerce related proceeds. Republic’s funding refinanced its existing bank facility while providing ample liquidity to enhance its e-commerce strategy. The company believes it will be an unpredictable wholesale revenue year, but are excited about the uptick in orders it has received directly from customers. “We enjoy partnering with strong equity partners that see value in non-dilutive, growth-supporting, debt financing opportunities,” said Robert Meyers, President of RBC, and further added, “We have built our platform to help support companies that need a mix of scalable growth-orientated solutions across our asset-based lending, direct to consumer and factoring products.”

Republic Business Credit partners with banks, accountants, sponsors, lawyers and investment banks to collaboratively support entrepreneurs across the United States, to create value, by enabling them to focus on growing successful businesses.

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Republic Business Credit provides fast and flexible working capital solutions to help rapidly growing businesses, start-ups, and companies in turnaround or recoverable distressed situations. Winner of the Emerging Growth Company of the Year award from the Louisiana Chapter of the ACG, and the FactoringClub’s Best Factoring Company Award for 2018, the Republic Business Credit team has the expertise necessary to meet the nuanced financial needs of companies across a wide variety of industries. It provides asset-based loans, ledgered lines of credit, traditional factoring, recourse factoring and direct to consumer loans including e-commerce working capital. Since its founding in 2011, Republic Business Credit has provided over $10 billion in working capital.

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Joanne Chesters
@republicbc
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