”As a result of a difficult 2022 holiday-sales environment, apparel importers and manufacturers are facing dual issues going into 2023. First is bringing their inventory back to a more manageable level. Many companies were dealing with a logistical logjam of too many containers arriving at the same time as well as missing the current season. This forced the retail community to postpone or cancel many orders. The importing and manufacturing trades are still carrying elevated inventory, causing added margin compression to their bottom lines. Second, the rising interest-rate policy of the Federal Reserve to tame inflation is causing many in the apparel community to resize their respective entity structures as we are potentially heading into a recession. Cost containment throughout the entire manufacturing and selling ecosystem will be paramount to come out stronger once economic recovery is underway.”
At Express Trade Capital, we provide financing along with logistics solutions, and serve as your consultant – providing advice including:
– How to structure transactions for maximum profitability. – How to most efficiently move your goods from pickup to delivery to your customer. – How to manage cash flow and mitigate risk throughout the various stages of production and delivery.
This advisory capacity truly sets us apart from other financiers. It’s in our best interests to give you the best advice because our own profitability is determined by your success.
The cosmetics industry is one of the highest valued retail markets in the United States. According to Inc., beauty product sales (which includes skincare products, makeup, and fragrance) generate more than $50 billion each year. The average consumer spends thousands on beauty products and services annually. In fact, a recent study from Wells Fargo showed that many Americans will decide whether to purchase a product based on whether or not it’s available in store or online.
After being nominated for top women’s leadership in North America, the owner of a 2-year-old cosmetics business had her eyes set on expanding.
The company has recently tripled their sales volume, with more accounts and larger orders in the pipeline, working capital was constrained and the client needed assistance to keep up. With big box retailers knocking and further large orders on the horizon, they simply didn’t have financial stability to handle it all. When the prospect reached out, ETC put on its war paint and embarked on a complete financial makeover for the client. Starting with a solid foundation of factoring to speed up customer payments and PO funding facility to defray the costs of production, the client was prepared for Express to apply concealer to their cash flow issues.
Thanks toEric Khorsandi who sourced this deal, the client is now equipped to scale rapidly and responsibly with a secured financing facility that also mitigates and protects against customer credit and supply chain risk. Now that ETC rolled out the rouge carpet, the client’s path is comfortably powdered (and powered) for growth. ETC is blushing with pride for starting another promising relationship (and for its newly discovered makeover chops).