Background

This online retailer takes a limited number of pre-orders for each new collection it launches.

This creates both exclusivity and hype while ensuring the business never wastes money on over ordering.

To further keep costs low, they use drop-shipping to send the products straight from the manufacturer to customers.

A typical sales cycle, from placing an order with the manufacturer to customers’ receiving their items, is around three months.

Funding request

Annual turnover was approaching £2 million, with ambitions to grow to £5 million.

The new CFO wanted to support this growth by making more cash available at any point during the sales cycle to support bigger and more varied stock orders.

How we helped them RISE

We matched the retailer to a stock finance facility of £250k at 2% per 30 days.

This enabled the CFO to draw down funds as needed and only pay interest on the amount withdrawn for the length of one sales cycle - three months.

The business committed to repaying each withdrawal within four months.

Now that they can afford to order more, the business is set to meet its growth target

Continued support

This wasn't the only time we supported this small business. They also chose to work with Risecap when they had a negative balance sheet but needed funding for marketing and PR activities. Read more >

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