Italy ยท Fashion and apparel
A mid sized fashion brand had grown reliant on informal extended terms from suppliers to fund seasonal buying, and wanted a proper facility before those terms were withdrawn.
The brand placed the bulk of its stock orders six months ahead of each season, but did not collect from retailers until well after delivery. Two key suppliers had begun asking for earlier settlement.
The company's bank facilities were sized against property, not stock, and had no room to grow with the buying cycle.
We built the case around the stock cycle itself, showing purchase orders, sell through rates by season, and the gap between supplier payment and retailer collection.
Two specialist stock finance providers were approached, along with one bank with a dedicated retail and fashion desk. We negotiated advance rates against both raw material and finished stock.
A EUR 3.8m facility was agreed, advancing against stock at each stage from order to delivery.
The brand paid its suppliers on standard terms again, which restored two relationships that had been under strain, and placed its next season's orders on time.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
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