Republic Business Credit Provides Non-Borrowing Factoring Facility to Apparel Importer

Republic Business Credit provided credit consultation and collection services to a West Coast based family-owned apparel importer during the COVID-19 pandemic. Republic’s credit protection solution covers all new orders the company ships to retailers.

“The comfort of knowing that we will collect our wholesale receivables provides us the confidence to continue supplying large retailers, while increasing our responsiveness to fill orders to established retailers that are reopening in certain core markets,” the company founder said.

The company primarily imports a women’s fashion line in the light, work from home and leisure categories. It sells dresses, blouses, pants and lounge wear in the medium price segment. The company believes it is well positioned for the post-pandemic transition, having minimal debt and the ability to limit its overhead expenses, but sees an unpredictable year ahead in terms of revenue and the credit worthiness of retailers.

The company finally set up its non-borrowing credit facility after many years of conversations. The credit protection allows the company to place orders with its vendors and pay its suppliers, assuming the product arrives to the retailer.

Republic Business Credit provided a non-borrowing, traditional factoring facility with credit protection and collection services and minimal annual volume requirements. Republic provided the credit information to support the decision for which orders to take and which ones to avoid during the recession. The apparel company believes there will be an uptick in volume as the year progresses, but it might be unevenly spread across its customer base depending on reopening guidelines.

“We will always support the apparel and consumer packaged goods industry with our traditional factoring product,” Matthew Begley, COO of Republic, said. “We added our direct to consumer and asset-based lending products to support a wider range of businesses cycles throughout the consumer packaged goods community.”