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. 

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ABLE Clothing, a bellwether DTC fashion brand, was looking for cash flow assistance and help with improving their profitability when enlisting Onward’s services.

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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.

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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.

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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

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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.