Direct to Consumer (DTC). Financing options designed for E-commerce businesses seeking funding for inventory, or on their receivables and merchant accounts. A direct-to-consumer loan “DTC or ECommerce” is for growing businesses that need more freedom than a traditional Asset-Based Loan “ABL” structure by leveraging their retail, merchant, and e-commerce cash flow.
Direct to Consumer product advantages:
- Growth Orientated Capital for consumer-focused brands
- Asset Based Loan on inventory
- Leverage merchant and e-commerce receipts
- Leverage accounts receivables
- No A/R to inventory ratio for well-supported companies
- Non-dilutive capital without any warrants
This Direct to Consumer product will be structured as an inventory loan with an optional accounts receivable or merchant account facility, however, if the business does not need to borrow on its inventory, we can look at a facility solely on the receivables and merchant accounts.
A DTC facility maximizes borrowing availability across inventory, accounts receivables, and your merchant cash flow. Our Direct-to-Consumer facility will take into account the value of your inventory, along with your monthly credit card sales. Those credit card sales could be through an e-commerce or retail sales transaction. Our DTC facility provides companies with additional cash flow by understanding the velocity of their credit card payments.
A Direct-to-Consumer facility may result in increased due diligence, on-site field exams, and possibly appraisals for the larger facilities. The facility may remain free of financial covenants on its DTC facilities by focusing on the cash flow and collateral.
Direct-to-consumer facilities are designed for established and growing e-commerce businesses with annual sales volume starting at $10 million.
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