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£1.6m growth capital for a supplements brand gearing up for their biggest Q4 yet

A fast-growing online supplements retailer needed flexible funding to secure inventory ahead of peak season. Here's how Risecap structured a bespoke two-tranche facility that saved them hundreds of thousands - and changed their view on working with brokers.

CLIENT SNAPSHOT

Online supplements retailer | £15m annual revenue | Double-digit YoY growth
A subscription-based e-commerce brand selling direct-to-consumer across the UK and Europe. Transitioning from fractional to in-house FD during a critical growth phase.

THE CHALLENGE

Two major supplier payments totalling £1.7m were due over the next quarter - including a £1m order and a £700k commitment. With Q4 approaching (their biggest revenue period), they needed to secure inventory while preserving cash flow. The timing pressure was intense: miss these orders, and they'd risk selling out during peak season.

WHY THEY CAME TO US

  • Fractional CFO referred them during the handover to their new in-house hire
  • Previous experience going direct to lenders, but needed speed and certainty this time
  • Initially skeptical about broker fees ("We don't want to pay more than needed")
  • Other offers were coming in at 1.2-1.5% per month - too expensive for their margins

The new FD was under pressure to get this right - and they did.

OUR APPROACH

We mapped out their cash flow cycle and supplier payment terms. Key insights we highlighted:

  • 30-day supplier payment terms could be leveraged strategically
  • Peak season cash flow patterns needed flexible drawdown timing
  • Their £15m revenue scale needed flexibility and the best pricing

Rather than rush to market, we spent time structuring the perfect solution. We negotiated directly with a lender who typically only offers single drawdowns, convincing them to create a bespoke two-tranche structure.

THE IMPACT

  • £1.6m growth capital across two flexible tranches
  • 0.9% monthly rate (vs 1-1.4% from competitors)
  • 9-12 month flexible term
  • No broker fees to client - lender-paid arrangement
  • Funds available to drawdown when ready

The two-tranche structure was key: they could delay the second drawdown until needed, minimising interest costs while maximising supplier payment terms. Total interest savings vs competitors: approximately £115,000 over the term.

"I thought brokers just added cost and complexity. Risecap proved me completely wrong."
  • CFO

TAKEAWAY

Even at £15m revenue, the right broker relationship unlocks better terms than going direct. Strong lender partnerships mean bespoke structures that actually save money.

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