Blog/News

Express Provides a $3.5M E-Commerce Facility to a well established Manufacturer.

Express Trade Capital (“ETC”) is thrilled to announce the addition of a $3.5MM B2C – Ecommerce financing facility to a well-established and fast-growing cashmere apparel manufacturer.

The client produces sustainable cashmere apparel sourced from ethically farmed and well pampered Mongolian goats.  Not content to be just another sheep in the herd, the client signed with Express over 6 years ago and obtained a multi-tier facility that included factoring, PO financing and both documentary and standby letters of credit.  Equipped with the proper facilities, the client wisely spent their time and capital, growing over 10x since starting with ETC.

In addition to producing high end, sustainable and affordable cashmere products, the client also employed savvy marketing skills to create quirky comedic content which garnered millions of views and helped rocket their online sales to over $25MM in annual revenue.

As their B2C ecommerce business took off and exceeded their wholesale revenue, the client needed additional assistance to keep up with heavy, growing demand.  They needed more capital but didn’t want to get fleeced by promises of quick cash at exorbitant rates. Naturally, they approached ETC based on the trust earned from shepherding their current facilities.  Upon discussion, it became clear these cashmere merchants needed more than mere cash – they needed a program that could scale along with their sales. 

Given the client’s solid longstanding history with the client and ETC’s deep knowledge of the client’s products and operations, ETC was able to quickly structure an e-commerce financing program to help them shear their sheep of expanding revenue. 

This facility allows the client to meet and exceed their internal projections and includes an accordion feature to expand the facility further based upon reaching certain credit milestones.  

This is just another example of how ETC can quickly deploy a vast suite of services to help clients grow and prosper.  Is ETC the GOAT of finance? Maybe. Maybe not.  But in this case, they certainly stepped up and led their flock to the promised land of greener pastures and great growth, ensuring their client’s capital needs shall not want.

Since 1993, ETC has been advising its clients on the following:

  • 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.
  • How to eliminate bad debts.

To schedule a discovery call and see how ETC can help your business, contact us here ➡️ https://lnkd.in/e84Ti6hg

Ashley Orlando VP is selected as a 2023 SFNet’s 40 under 40 Winner.

It is with great joy that we announce our nominee Ashley Orlando VP/Director of Eco Financing was selected as a 2023 SFNet’s 40 under 40 WINNER!
Ashley was nominated by Mark Bienstock & David Estrakh in virtue of her being an outstanding employee, colleague, and exemplar of true excellence. We acknowledge and honor her as she has honored us for the last 8+ years through her relentless devotion and unwavering zeal to elevate our profession. 

#40Under40#RockstarEmployee#professionalexcellence#securedfinance#expresstradecapital#SFNet

How to keep your business alive during a recession?

In the United States, recessions are a natural part of the economic cycle. While they can be difficult for businesses to weather, they can also present opportunities for growth and innovation. Here are 5 tips for how your business can survive and even thrive during a recession.

  1. Inventory & Interest Expense Management.

The first crucial point is to properly monitor your inventory levels. Too high of an inventory level will then require you closing out inventories at either cost or substantial potential losses which will have a negative impact on your gross margin. You will want to monitor and maintain the proper inventory levels going forward so that you are able to maintain your existing gross margin percentages.

Almost all business owners are dealing with higher interest rates as the federal reserve has been continuously increasing the prime rate to combat inflation. Companies need to be very cognizant of their borrowing needs and only draw down the minimum funds required to operate the business on a daily basis.  

To better plan for the management of the business, it’s recommended that companies do both: a full year cashflow forecast along with a rolling 3-month cash flow projection. While it is customary to do a 12-month projection, it is more appropriate to do a rolling 3-month projection to keep a good handle on constant changes in the economy as it relates to retail performance, interest rates, international politics etc.

Accordingly, if your business is seasonal in nature, it’s essential to monitor your inventory levels to make sure that if any potential adverse developments occur (that cause orders to be held back), your inventory levels are at a sustainable level.

2. Focus on Core Products. 

During a recession, consumers and businesses alike are likely to cut back on spending. This means that it’s more important than ever to focus on your core products and services. Identify the products and services that are most essential to your customers and concentrate on improving and marketing those offerings.

3. Expense Management as it relates to Overall Operations.  

Right sizing the business as it relates to expense management is imperative. If your sales volume is stagnating or decreasing, it’s vital that you look to right size the expenses, starting with payroll, which represents the biggest aspect of the expenses on the P&L side. However, a detailed review of all other operating expenses may uncover extraneous expenses which can be cut down or eliminated.

4. Embrace Digital Transformation.

In recent years, digital transformation has become increasingly important for businesses. During a recession, it’s even more crucial to embrace digital tools and platforms. This can help you reach new customers, improve your customer service, and streamline your operations.

According to a recent study by McKinsey & Company, companies that embraced digital transformation during the pandemic are more likely to see revenue growth and improved profitability in the coming years. This highlights the importance of investing in digital tools and platforms during tough economic times.

5. Maintain a Positive Attitude.

Finally, it’s important to maintain a positive attitude during a recession. This can be a challenging time, but it’s also an opportunity to innovate and grow. Stay focused on your goals and look for ways to improve your products. Remember that every business faces challenges, and that the most successful businesses are those that can adapt to changing circumstances.

According to recent statistics, a survey conducted by the National Federation of Independent Business found that 60% of small business owners feel optimistic about the future of their business. This shows that maintaining a positive attitude is a key factor in weathering tough economic times.

While recession can be a difficult time for businesses, with the right approach, you can overcome it and come out stronger on the other side.

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.
  • How to eliminate bad debts.

To schedule a discovery call and see how ETC can help your business, contact us here ➡️ https://lnkd.in/e84Ti6hg