Product Line: Factoring Line
Funding Line Amount: $500,000
Company Type: Online Distributor of Nutritional Supplements
Industry Type: Online Retail
Annual Revenue: $2.5 million
The nutritional supplement category has experienced steady growth over the years. There has been pressure on specialty retail stores as channels, such as Amazon/Whole Foods and food/drug/mass/warehouse, have emerged as destinations for consumers. Amazon is the #1 place consumers go to research a grocery product. They look to Amazon for information on these products more than any other resource. Even though consumers tend to make their initial grocery and supplement purchases at a retail store, repeat purchases usually get fulfilled by Amazon and other ecommerce websites. Our client, a retailer of vitamins, food supplements and organic groceries, distributes its products primarily through Amazon.
The young company has to hold a certain level of inventory so it never runs out of stock on Amazon. Therefore, it chooses to reinvest all of its profits in purchasing more inventory and increasing its clientele. Additionally, the company had to invest heavily in ecommerce tools to properly manage its products’ content, keywords, advertising and consumer reviews.
The company’s sales are strong and growing. It is a known entity within the category and is generally profitable. It has a solid partnership with Amazon and is able to effectively monitor its progress through technology. Based on these strengths, ExpoCredit was able to approve the increase of its factoring line from $250,000 to $500,000 so that the company can continue its upward trajectory and maintain its operational efficiency.
Thanks to ExpoCredit’s support of this company, it now has the additional resources necessary to continue its successful relationship with Amazon and its consumers.
ExpoCredit helped this company increase payment terms to its primary customer.
ExpoCredit is helping this company with the working capital needed to manage seasonality
ExpoCredit helped this company to have the working capital needed to operate according to its demand