Tailored financing solution
How eCapital helped KloneLab with their total AR management.
New Balance shoes—to leading retailers like Amazon, Golf Galaxy, The Golfer’s Warehouse, and hundreds of pro shops. Operating in a capital-intensive licensing and distribution model, the company relies heavily on timely working capital to fund manufacturer payments.
As buyer payment terms stretched to 60 and even 90 days, KloneLab needed more than just financing—they needed a partner to manage and optimize their accounts receivable from end to end.
THE CHALLENGE
KloneLab initially worked with another AR financing provider but quickly realized the service lacked critical capabilities—especially around collections, inventory finance, and credit support. When Brian Seppa joined as CFO in 2013, he began searching for a more comprehensive solution.
The company needed not only receivables financing but also back-office support to avoid hiring a dedicated credit team and better tools to assess customer risk as it expanded into new retail relationships.
In order for us to handle what I’d call all the back office AR, we’d have to go out and hire a credit manager and then we’d have to go hire two people on top of that to handle the receivables (that LSQ [eCapital] handles for us).”
Chief Finance Officer
Brian Seppa
THE SOLUTION
Referred to LSQ (now eCapital) during his search, Seppa found an ideal partner. eCapital offered a total accounts receivable financing and management solution, including credit assessments, collections, and real-time visibility into customer risk.
For many companies, assessing the creditworthiness of customers and potential customers is a hard problem to tackle. KloneLab finds itself in that category. eCapital helps them make credit decisions when they are looking to start new relationships.
KloneLab gained both capital and operational support, allowing them to scale without the overhead of building out an internal AR department. “What LSQ (eCapital) does is set a credit line per customer,” said Seppa. “If I went to my account manager and said, ‘I need a $200,000 credit line,’ LSQ (eCapital) would come back and say yes or no or we will only give you $50,000 because the numbers out there for that company aren’t that great. It really gives us insight into how to assess customer risk without having to hire a credit manager.”
THE STORY
Over nearly a decade, eCapital has become a critical part of KloneLab’s operations. From setting customer-specific credit lines to managing collections, eCapital provides both the liquidity and insight needed to keep KloneLab’s distribution engine running smoothly.
Even as the business grows, Seppa sees no reason to change course. “Even if we were so inclined to move to some other form of financing,” Seppa said, “it would be hard to replace the value of all the AR management and credit services LSQ (eCapital) offers.”
“(When I first met with LSQ [eCapital]) we just kind of hit it off and the numbers made sense,” – Brian Seppa
Explore the solutions that supported accounts receivable management for KloneLabs
ACCOUNTS RECEIVABLE FINANCING
Flexible financing solutions to help businesses improve cash flow, and unlock capital for growth.
