Tailored factoring solution
How eCapital helped Fashion Forms with their aspirations for success.
When Fashion Forms, the leading provider of women’s specialty bras and accessories, experienced a year of record-breaking sales, the company was ready to scale to new heights. Their products were in high demand, with major retailers like Target, Walmart, and Saks Fifth Avenue placing significant orders.
However, just as momentum was building, limited funding from their factoring partner put that growth in jeopardy. Fashion Forms turned to LSQ (now eCapital) for a flexible financing solution to keep up with surging demand.
THE CHALLENGE
Despite a banner year in 2019, Fashion Forms faced a working capital shortfall when their factoring company began tightening funding limits. As a result, the company was forced to turn down orders, delay shipments, and absorb costly chargebacks from retail partners.
According to VP of Finance Kevin Silacci, they missed out on an estimated $7 million in sales. “We found ourselves in this position where everybody wanted our products, and we had to choose who to give it to,” he shared.
We found ourselves in this position where everybody wanted our products, and we had to choose who to give it to because we couldn’t keep up with the orders.”
Owner
Ann Deal
THE SOLUTION
Recognizing that the opportunity cost of their current financing was too great, Owner Ann Deal approached her banking partner for help. That conversation led to eCapital, which offered a significantly higher advance rate and immediate access to additional working capital.
Just one week before the COVID-19 shutdown, Fashion Forms finalized its new facility with ecapital—positioning the company to navigate the pandemic with strength. “If we were using our previous factor, we may not be here right now,” Ann noted.
THE STORY
With eCapital’s invoice financing, Fashion Forms quickly rebounded to pre-pandemic revenue levels. The ability to leverage inventory and receivables for same-day funding has allowed them to consistently meet large retail orders.
Today, the company benefits from fast, reliable access to capital, a dedicated service team, and 24/7 visibility through eCapital’s real-time reporting dashboard. “Our business needs the availability to keep moving forward—and LSQ (eCapital) has it,” said Ann.
“Anytime we need an answer, we get it right away. LSQ’s (eCapital’s) team is very easy to work with.”
Explore the solutions that supported massive growth for Fashion Forms
INVOICE FACTORING
Flexible financing solutions to help businesses improve cash flow, and unlock capital for growth.
