Challenge
Running a DTC brand is an extremely cash intensive business. In addition to having to fund inventory, marketing and payroll, there are smaller expenses that, when taken as a whole, are a big impediment to positive cash flow. Some of these expenses include reshipping orders and paying the cost of return freight for customers.
ABLE Clothing, a bellwether DTC fashion brand, was looking for cash flow assistance and help with improving their profitability when enlisting Onward’s services.
Solution
By utilizing Onward’s on-demand membership program, ABLE passed the costs associated with lost, stolen and damaged packages and return freight onto Onward, turning a cost-center into a profit center in the process. Defraying these costs added 1% in GMV directly to ABLE’s bottom line.
As a new client, ABLE utilized the Onward Capital program to receive $25k as an upfront cash installment for using the Onward service. Upfront installments from Onward Capital are non-dilutive and interest-free. ABLE paid off this upfront installment using the revenue sharing benefit they received as a brand approved for Onward Capital. Afterwards, ABLE continued to receive revenue sharing from the premiums collected by Onward.
Customer Quote
Onward has been invaluable in helping us to not only provide our customers with exceptional service but also drive meaningful net revenue to our bottom line. I recommend every brand that qualifies to leverage their Onward Capital service. It’s a serious cash saver!
- Barrett Ward, CEO
About ABLE
ABLE is a leading women’s fashion brand with a mission to empower women through thoughtfully designed pieces and global impact initiatives. Founded in 2008, the brand is known for its leather bags, handmade jewelry, and denim jackets.