In apparel, the factory wants paying before the store does. Working capital covers the stretch between ordering fabric and getting paid for finished goods.
Apply Now →Apparel is a business of long chains. A designer or small label buys fabric and trim, pays a cutter, a sewing contractor and a finisher, ships to a retailer or sells direct, and only then collects. A wholesale buyer often pays after delivery, sometimes well after. The label has carried every cost in the meantime.
New York's garment trade is concentrated in the city, with a long tradition of design studios, showrooms and contract sewing. Smaller makers work through the same cycle at a smaller scale, and a single large purchase order can strain them more than a slow month would.
Working capital sits between steps two and five. It is not about a business failing, it is about growing an order without squeezing everything else.
A small label with a sewing contractor in the city lands a reorder that is twice its usual size, requiring about $70,000 of fabric, cutting and sewing. The retailer pays after delivery. Without extra cash, the owner would have to split the order, delay it or cut other production. With working capital, the order ships as one run. These are round numbers to show the timing, not terms we offer or typical outcomes.
Beyond purchase orders, apparel owners spend on industrial sewing machines, cutting tables, pressing equipment, sample runs for the next season and trade-show or showroom costs. These come before the sales they hope to produce. Buying equipment can also cut dependence on outside contractors, but only if cash is there when the machine is needed.
Most apparel owners we would expect to hear from are spending on one of four things: materials for a confirmed order, a second production run while the first is still unpaid, equipment that brings a step in-house, or samples and showroom costs for a coming season. The common thread is a cost that is certain and an income that is delayed.
A few specifics worth keeping in mind. Seasonal collections mean fabric is bought months before shoppers see the clothes. A fashion label that sells to boutiques may have many small buyers, each paying on its own schedule, so the cash trickles in over weeks. And a contract sewing shop on the other side of the relationship faces the reverse: it must pay its workers weekly while the brand pays on its own terms.
That second case matters. If you run a sewing or finishing shop, you are often the one carrying the cost for a customer's slow payment, and working capital can keep the workroom running between payments rather than forcing you to turn work away.
We fund $25,000 to $5,000,000, in as little as 24 hours once approved. FICO 500+ is considered, tax returns are not required, and we ask for about three months of business bank statements. Sole proprietors, including independent designers, can apply. The soft credit pull will not lower your score.
Start the 5-minute application when you have a number in mind. It uses a soft credit pull, and sole proprietors can apply.
Yes. You do not need your own factory. You need a business bank account with revenue moving through it.
It can help you explain what the funding is for. Say in your application what the order requires and when the buyer pays.
Both can apply. Statements show how revenue arrives, whether from retail buyers, online orders or both.
No. We ask for about three months of business bank statements.
Up to $5,000,000, with a minimum of $25,000.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
