๐ธClearco - Clearco provides ecommerce businesses with working capital to fund invoices and receipts. Increase your ecommerce business revenue with predictable, controllable, and scalable funding.
๐ 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.
๐ธ Invoice funding is a fast and flexible option for DTC businesses to fund inventory purchases, marketing spend, and logistics.
๐ Clearcoโs model allows for a fixed payback amount over a set period, enabling better planning and avoiding unpredictable daily remittance rates based on revenue.
๐ก Itโs 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.
๐ค Invoice funding can coexist with traditional bank lines of credit, creating a diverse financing strategy for businesses at different stages of growth.
๐ฏ 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
โ0:47 - Clearco for invoice funding
โ4:11 - Challenges of financing options for DTC brands
โ5:05 - Importance of profitability and cash flow
โ6:07 - Clearco's growth from 2019 to 2020
โ10:11 - Quick funding process
โ12:00 - The value of Clearco's funding
โ17:05 - Clearco's capital as fuel for growth and inventory turnover
โ19:40 - Benefits of improved terms with suppliers through funding
โ24:21 - Clearco's transparency in costs and repayment structure
โ26:35 - Loss rates and financing counterparties
โ28:02 - Capital for seasonal sales (BFCM)
โ29:21 - Inventory planning for holiday sales
โ31:34 - Leveraging invoice funding effectively
โ35:07 - Clearco's unique position as an invoice funding solution
โ39:01 - Various funding options for businesses
โ41:24 - Clearco's dynamic approach to funding based on invoice uploads
โ46:50 - Fees and costs associated with capital
49:09 - Final chews
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Ron Shah - / obviceo
Ash Melwani - / ashvinmelwani
Chew On This - / chewonthisdtc
