Access to quick turnaround working capital enables apparel manufacturers to capture new revenue opportunities in the fast-growing global apparel market.
Singapore – Global invoice financing marketplace, Incomlend, announced a multi-million dollar quick turnaround financing solution for an apparel manufacturer based in China. The manufacturer mainly exports to retailers in the United States (US), South Africa, South America, and Europe.
Among the manufacturer’s list of clientele includes one of the world’s top 500 retailers. Based in the United States, the customer buys knitted clothing, t-shirts, and sweater from the manufacturer. The retailer accounts for a large percentage of the apparel manufacturer’s sales revenue, making it a significant client for the business.
It typically takes the manufacturer up to 90 days to cash in an invoice. However, these extended payment terms can hinder their financial agility and significantly impede the manufacturing output of their sweater products which can take up to three months to produce and export. Any payment delay can cause the company to miss the seasonal sales cycle of sweaters.
Incomlend offers a quick turnaround financing solution for the manufacturer to cash in an invoice as early as three days after shipment. It enables the company to access cash flow to continuously finance their operations and even ramp up their production capabilities. This allows the manufacturer to fulfil upcoming apparel orders from existing clients and even accept orders from new clients.
Based on a study by Statista, the global apparel market is projected to hit approximately US$2 trillion by 2026, with the US and China accounting for the majority of this demand. While China leads the rankings for the highest value of apparel exports, the US is second only to the EU in the value of apparel imports.
Founded in Singapore and with offices in Europe, India, and Southeast Asia, Incomlend connects small and medium enterprises (SMEs) globally with communities of investors. It enables investors to buy and sell individual invoices via a proprietary tech-enabled and secure invoice exchange platform. At the same time, Incomlend’s global invoice financing marketplace provides worthy SMEs with the working capital they need to pursue new revenue streams.
Incomlend CEO and Co-founder Morgan Terigi commented:
“We see a revitalised production and trading activities across the global apparel market. As the demand for garments continues to soar, it will lead to a greater appetite for alternative financing instruments from companies looking to capitalise on the growing trend. Incomlend can help garment manufacturers, especially in countries like China and India. We deliver tailored competitive and alternative non-recourse working capital solutions to help them grow their business in the booming apparel market.”