Working Capital for Wholesaler

Funding a rapidly growing contemporary ladies fashion wholesaler and retailer


Fashion Wholesale




Working Capital


Our client is a rapidly growing ladies’ fashion wholesaler and retailer. They design and import playful, fun and individual apparel and sell this to leading online retailers, as well as selling via their own online brand. They have a network of established suppliers in China and Turkey and ship stock in throughout the year.


Outperforming their rival suppliers our client was receiving increasing demand from their main wholesale client – a leading online fashion website. While their order book was growing month on month, their cash flow was struggling to keep up. Cash was needed to pay suppliers before goods left the factory overseas, which was then shipped to the UK and sold. With their average client payment terms being 45 days it could be a long wait to then get cash back in to the business.


In order to fund increasing stock purchases and the development of new product lines they needed additional cash to support growth. Our specialists were able to structure a £1m factoring facility, allowing our client to draw down funds from the lender as soon as they delivered their product to their client. Rather than waiting the usual 45 or 60 days to receive payment from their client they could now access funds immediately, recycling the cash to purchase more stock and grow the business. We subsequently added a trade finance facility of £300k, allowing suppliers to be paid from this credit line. This allowed our client to fund the lifecycle of the transaction, from initial supplier payment through to sale. 

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