Finding the Right Financing for Your First Big Purchase Order
The moment has finally arrived. You’ve connected with a retail buyer on RangeMe or at an ECRM Session, and after subsequent follow up meetings you’ve landed a large purchase order. All of the hard work – the numerous phone calls, emails, sending product samples out to various members of the retail organization – has finally paid off. Then reality sets in, and you ask yourself:
“How am I going to fulfill this order?”
With CPG brands under immense pressure, cash flow is continuing to be a major blocker for scaling revenue growth, and sometimes it’s difficult to find how to fulfill these orders. Having to cash flow a production run for up to 60-90 days, then waiting another 60-90 days to be paid by a retailer is grueling, and most growing brands don’t have a plan in place to manage this situation. Even established brands like Dean Foods filed for bankruptcy in 2019 with a large amount of accounts receivable outstanding, which if paid could have helped avoid this situation.
Up until recently, options were limited, either by receiving a personal guaranteed back loan, or giving up equity just to operate with day to day pressures of working with larger …