An apparel and accessories licensee of a global athleticwear brand came to Aurous with a maxed-out ABL line and zero inventory availability. Their ABL was willing to increase the line on the AR side, but wanted to minimize their exposure in the ratio of AR to inventory. While the client’s factories were approved by the licensor and were willing to extend a degree of payment terms to the client, they were not comfortable increasing the credit line beyond a certain level.

To solve for their needs, Aurous provided production guarantees to their supply chain and financed the growth, at which point the ABL was very willing to buy in the additional sales. This resulted in a doubling of revenues with global brick and mortar retailers and ecommerce channels. Because of their performance, Aurous was also able to support a certain percentage of ecommerce inventory production. Aurous’s efforts both increased the AR and lowered the inventory exposure, putting the client in a better position with their ABL. The successful execution of this strategy enabled the ABL to increase their $25MM line to approximately $35MM.

Aurous is here to keep all AR lenders in formula. If you’re pushing the boundaries of your comfort with a portfolio company, give us a call:

Josh Sirchio

Head of Revenue

(323) 807-8122

josh@aurousfinancial.com