Strategic Planning for Sustainable Growth

💸Clearco - Clearco provides ecommerce businesses with working capital to fund invoices and receipts. Increase your ecommerce business revenue with predictable, controllable, and scalable funding. 🔗 https://clear.co/ In this episode of Chew on This, CEO of Clearco Andrew Curtis and Michael Zung from Bloomist join Ash to discuss revenue-based finance, specifically invoice funding, as a growth tool for DTC e-commerce businesses. They explore how invoice funding can help DTC brands overcome cash flow challenges and accelerate growth. They also analyze the pros and cons of invoice funding, including its unique features compared to other funding options, and provide practical advice on how to evaluate different financing options. 💸 Invoice funding is a fast and flexible option for DTC businesses to fund inventory purchases, marketing spend, and logistics. 📈 Clearco’s model allows for a fixed payback amount over a set period, enabling better planning and avoiding unpredictable daily remittance rates based on revenue. 💡 It’s crucial to understand the cost of capital and the potential return on investment when considering invoice funding, and Clearco offers tools and support to help businesses model their finances. 🤝 Invoice funding can coexist with traditional bank lines of credit, creating a diverse financing strategy for businesses at different stages of growth. 🎯 Clearco prioritizes transparency and provides specific details about its fee structure, empowering businesses to make informed decisions about the right financing tools for their needs. 0:00 - Intro ​0:47 - Clearco for invoice funding ​4:11 - Challenges of financing options for DTC brands ​5:05 - Importance of profitability and cash flow ​6:07 - Clearco's growth from 2019 to 2020 ​10:11 - Quick funding process ​12:00 - The value of Clearco's funding ​17:05 - Clearco's capital as fuel for growth and inventory turnover ​19:40 - Benefits of improved terms with suppliers through funding ​24:21 - Clearco's transparency in costs and repayment structure ​26:35 - Loss rates and financing counterparties ​28:02 - Capital for seasonal sales (BFCM) ​29:21 - Inventory planning for holiday sales ​31:34 - Leveraging invoice funding effectively ​35:07 - Clearco's unique position as an invoice funding solution ​39:01 - Various funding options for businesses ​41:24 - Clearco's dynamic approach to funding based on invoice uploads ​46:50 - Fees and costs associated with capital 49:09 - Final chews Follow us, subscribe to our newsletter, and to see our exclusive merch check out https://chewonthis.io/ Ron Shah -   / obviceo   Ash Melwani -   / ashvinmelwani   Chew On This -   / chewonthisdtc