Revenue-based financing is an advance you repay as a percentage of your daily sales, rather than in fixed monthly instalments. For a retailer, it solves one specific problem: how to buy stock before you’ve sold it without emptying the account you need to run everything else.
Because that’s the position most growing retail businesses find themselves in. A supplier might want 30% upfront to start production and the remaining 70% before the container leaves the factory. That’s your money gone, in full, months before a single unit sells. Meanwhile, payroll still needs paying, marketing still needs funding, and next season’s order is already being quoted.
This isn’t a sign your business is in trouble, but that your cash is doing exactly what inventory-led retail asks of it – going out early, coming back late. The problem is that while it’s out, you can’t use it for anything else.
This article looks at why stock swallows cash the way it does, what a funded and unfunded inventory cycle actually looks like side by side, and how revenue-based financing changes the timing.
Revenue-based financing is an advance you repay as a percentage of your daily sales, rather than in fixed monthly instalments. For a retailer, it solves one specific problem: how to buy stock before you’ve sold it without emptying the account you need to run everything else.
Because that’s the position most growing retail businesses find themselves in. A supplier might want 30% upfront to start production and the remaining 70% before the container leaves the factory. That’s your money gone, in full, months before a single unit sells. Meanwhile, payroll still needs paying, marketing still needs funding, and next season’s order is already being quoted.
This isn’t a sign your business is in trouble, but that your cash is doing exactly what inventory-led retail asks of it – going out early, coming back late. The problem is that while it’s out, you can’t use it for anything else.
This article looks at why stock swallows cash the way it does, what a funded and unfunded inventory cycle actually looks like side by side, and how revenue-based financing changes the timing.
Revenue-based financing is an advance you repay as a percentage of your daily sales, rather than in fixed monthly instalments. For a retailer, it solves one specific problem: how to buy stock before you’ve sold it without emptying the account you need to run everything else.
Because that’s the position most growing retail businesses find themselves in. A supplier might want 30% upfront to start production and the remaining 70% before the container leaves the factory. That’s your money gone, in full, months before a single unit sells. Meanwhile, payroll still needs paying, marketing still needs funding, and next season’s order is already being quoted.
This isn’t a sign your business is in trouble, but that your cash is doing exactly what inventory-led retail asks of it – going out early, coming back late. The problem is that while it’s out, you can’t use it for anything else.
This article looks at why stock swallows cash the way it does, what a funded and unfunded inventory cycle actually looks like side by side, and how revenue-based financing changes the timing.
Revenue-based financing is an advance you repay as a percentage of your daily sales, rather than in fixed monthly instalments. For a retailer, it solves one specific problem: how to buy stock before you’ve sold it without emptying the account you need to run everything else.
Because that’s the position most growing retail businesses find themselves in. A supplier might want 30% upfront to start production and the remaining 70% before the container leaves the factory. That’s your money gone, in full, months before a single unit sells. Meanwhile, payroll still needs paying, marketing still needs funding, and next season’s order is already being quoted.
This isn’t a sign your business is in trouble, but that your cash is doing exactly what inventory-led retail asks of it – going out early, coming back late. The problem is that while it’s out, you can’t use it for anything else.
This article looks at why stock swallows cash the way it does, what a funded and unfunded inventory cycle actually looks like side by side, and how revenue-based financing changes the timing.
