Why Your Bank Won’t Finance DTC Inventory

Episode Summary

In this episode of the Free to Grow CFO podcast, Jon Blair and Quentin Purtzer discuss the challenges DTC brands face in securing financing for inventory, particularly in the context of traditional banks' reluctance to finance DTC inventory. They explore how Flexport Capital offers unique solutions through real-time visibility of inventory and logistics, enabling brands to finance in-transit inventory and navigate personal liability issues more effectively. The conversation emphasizes the importance of clean accounting and the role of a CFO in helping brands scale successfully, supported by a case study illustrating the benefits of strategic financial planning and collaboration with lenders.

Key Takeaways

-Collaboration between CFOs and lenders can lead to better financing solutions.

-Real-time visibility into inventory allows for more aggressive lending terms.

-Personal liability requirements can be reduced with effective inventory management.

-Flexport Capital provides a unique inventory financing solution that integrates with logistics.

Episode Links

Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/

Quentin Purtzer- https://www.linkedin.com/in/quentin-purtzer-b4a763a9/

Free to Grow CFO - https://freetogrowcfo.com/

Flexport Capital - https://www.flexport.com/products/capital/

Transcript

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00:00 Introduction to DTC Financing Challenges

02:11 Understanding Flexport Capital's Unique Offerings

05:15 The Role of Technology in Inventory Financing

10:15 Financing In-Transit Inventory Explained

19:14 Navigating Personal Liability in Lending

23:57 The Importance of Clean Accounting for Financing

29:41 The Need for CFOs in Scaling Brands

33:13 Case Study: Successful Financing and Growth

37:00 Key Takeaways for DTC Founders