Inventory Financing: A Crash Course with Capacity Partner, Kickfurther
Cashflow bottlenecks are all too familiar to growing brands. This can create tremendous strain throughout a business, but can have perhaps the most impact on inventory purchasing. Dealing with a cash crunch and need to purchase more inventory? Good luck! Sure, there are traditional financing options, but they can come at a steep cost. Dilution. High interest rates. Inflexible terms. They can also take a long time to secure.
But then there’s inventory funding. Inventory funding enables companies to access funds that they are unable to acquire through traditional sources – and one of our newest partners, Kickfurther, is leading the way.
“We’re saying to brands ‘You can do this on terms that match your natural cash flow. ’”
John Heberling
Senior Partnerships Manager, Kickfurther
How Kickfurther Works
Kickfurther connects brands to a community of buyers who help fund the inventory on consignment, so it’s not a debt and doesn’t sit as a liability on your balance sheet. Funding goes directly to a brand’s manufacturer for production of goods and can fund up to 100% of inventory costs. The brand then makes payment as it receives cash from sales. Kickfurther earns a monthly subscription fee from the brand based on its annual revenue.
What Brands are a Good Fit for Inventory Financing?
Brands that seek Kickfurther funding are often experiencing cash flow bottlenecks, struggling to meet demand and other anticipated spikes in volume. Those facing substantial inventory investment upfront tend to be a good fit too.
“We’re also seeing traction with brands that are rapidly adding more SKUs, have high sell-through rates and are adding more channels. In addition, adding more warehouse space is another indicator that a brand might want to consider inventory financing.”
John Heberling
Senior Partnerships Manager, Kickfurther
“From the Capacity side, having Kickfurther in our back pocket is useful when we’re working with a client to solve inventory challenges. For each client, we sit on a massive amount of inventory data that can help us make strategic recommendations.”
Jason Depietropaolo
Head of Partnerships, Capacity
Better Together
Operating on the frontlines of inventory financing gives Kickfurther deep insight into a brands’ fulfillment operations.
“In a ‘better together’ partnership, we know what signs to look for in a brand that would warrant a conversation with Capacity. We know their prowess in the beauty and wellness spaces. We know their sweet spot when it comes to client size and stage. And perhaps most importantly, we know they’re good people who go above and beyond for their clients.”
Want to Learn More About Inventory Financing?
Reach out to us or contact our friends at Kickfurther directly.
The Capacity Partnership Program
The partnership program at Capacity builds collaborative relationships with organizations throughout the retail and ecommerce ecosystem that benefit the brands we support. From inventory financing to ERP integration and internationalization specialists, we know that assembling a roster of vetted, trusted and innovative industry expertise helps our clients scale to their full potential.
Interested in learning more about becoming a Capacity partner? Get in touch.