Direct-to-consumer (DTC) financing is available to e-commerce businesses seeking funding for inventory, receivables, and merchant accounts.
A direct-to-consumer loan (referred to as "DTC" or "eCommerce") is designed for growing businesses that require more flexibility than a traditional asset-based loan ("ABL") structure, allowing them to leverage their cash flow from retail, merchant, and e-commerce operations.
Direct-to-Consumer Product Advantages:
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Growth-oriented capital for consumer-focused brands
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Asset-Based Loan on Inventory
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Leverage merchant and e-commerce receipts.
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Leverage accounts receivable
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No A/R to inventory ratio for well-supported companies
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Non-dilutive capital without any warrants
Direct-to-Consumer and eCommerce Funding Solutions
This direct-to-consumer/eCommerce 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 receivable, 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 may originate from either e-commerce transactions or retail sales. 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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