The Pinch Points
Why Apparel & Textile Operators Come to Us Instead of Their Bank
Apparel is a timing trap — you commit in November, sell in March, and collect on net-60. Your bank looks at fashion inventory and sees risk. Sound familiar?
Spring Commits in November
Spring collections need to be ordered by November. Your top brands require $150K in pre-season commitments. Retail orders won't arrive until February — a 4-month cash gap.
Fifty Doors, Net-60 Terms
A department-store chain wants to carry your brands — 50 doors, initial order $200K. Terms are net-60 plus return allowances. The opportunity is massive but the terms strain your cash.
MAGIC Is Next Month
MAGIC trade show is next month. Booth, travel, samples, and marketing total $25K. Last year's show generated $400K in new accounts.
Factory Wants the Deposit
Your overseas factory needs $85K wired before they'll cut fabric for your fall line. The styles are already sold to 30 boutiques — but the factory won't start without the deposit and lead time is 12 weeks.
Returns You Can't Resell Fast
A major retailer returned $45K in unsold spring merchandise under their markdown allowance. You're stuck with the inventory and short on cash to buy summer product that's already selling through elsewhere.
Chargeback for the Mill's Delay
A retailer charges back $30K for a late delivery your overseas mill caused — the penalty clears your account before the forwarder credits you, and you eat the float to keep the account.
What an operator said
“Our pressing line went down mid-season with 12,000 units committed. Equipment financing replaced it in days — we shipped the retailer order on time and kept the program.”
Lena K. · apparel distributor · Los Angeles, CA
Start Here
See Your Range in 60 Seconds
No credit check, no documents to start, and an estimated funding range on the spot. No one contacts you until you’re ready to move forward.
What Happens When You Start
Estimate Your Capital Range
Slide to your annual gross revenue. We size capital off your top line — not your credit score.
Estimated Capital Range
A conservative range based on 10-15% of annual revenue — many businesses qualify for more with strong receivables or assets behind them. Lenders return real term sheets once they see your file.
60 seconds · No obligation · Estimate only
Built for the Trade
What We Fund for Apparel & Textile Operators
Bridge the Pre-Season Gap
Spring commits in fall and retail pays in spring — a seasonal line funds the pre-season buy so months of inventory waiting on revenue doesn't strand your cash.
Capital That Accounts for Returns
Department stores pay net-60 and reserve for returns and markdowns — A/R financing built for fashion terms funds against what you'll actually net, not the gross.
Fund the Factory Deposit
Overseas factories want a deposit before they cut fabric, even on styles already sold through to your boutiques — trade financing covers it so production starts and the trend doesn't move on.
Lock Factory Capacity for Hot Trends
A style is hot for one season — inventory financing lets you commit to the production run now so a competitor doesn't lock the factory while a bank deliberates.
Match Your Situation
The Cash-Flow Gaps We Fund for Apparel & Textile
Match your situation to the structure. Every one of these funds on your revenue, not a perfect credit file.
| What It Looks Like | Funding Solution | Amount | Speed | |
|---|---|---|---|---|
| Pre-season buy commitments | Spring collections lock in November. You need $150K committed to brands 4–5 months before retail orders arrive. Miss the window and you're scrambling for off-price goods at thin margins. | Working Capital | $75K–$300K | 1–3 days |
| Fashion trend risk exposure | You committed $80K to a trending style. If it doesn't sell through, you're stuck with markdowns at 40–60% off. You need capital flexibility to pivot to what's actually moving. | Business LOC | $250K–$1M | 1–5 days |
| Trade show investment | A MAGIC booth, travel, samples, and marketing run $25K. Last year's show generated $400K in new accounts. The ROI is clear but the cash goes out six months before orders arrive. | Working Capital | $75K–$200K | 1–3 days |
| Overseas factory payment terms | Your factory needs $85K wired before it cuts fabric. The styles are sold to 30 boutiques but the factory won't start without the deposit and lead time is 12 weeks. | PO Financing | $75K–$500K | 3–5 days |
| Clearance liquidation cash drain | A major retailer returned $45K in unsold spring merchandise under their markdown allowance. You're stuck with dead inventory and short on cash to buy summer product. | Invoice Factoring | $75K–$250K | 1–2 days |
The Products
How Apparel & Textile Financing Is Structured
Most apparel and textile files fund between $75K and $5M+, structured to the order or season in front of you. Larger lines available when revenue, cash flow, and story qualify.
| Amount | Term | Best For | Funding Speed | Typical Structure | |
|---|---|---|---|---|---|
| Working Capital | $75K–$5M+ | 6mo–10yr | Pre-season buys, trade shows, payroll | 1–3 days | Often unsecured, daily/weekly ACH |
| PO Financing | $75K–$5M+ | Per order | Production and import against committed orders | 3–5 days | PO and inventory secure the advance |
| Business LOC | $75K–$5M+ | Revolving | Seasonal collection buys and restock | 1–5 days | Unsecured line, no PG by default |
| Invoice Factoring | $75K–$5M+ | Per invoice | Net-60 department-store receivables | 1–2 days | Invoices secure the line, no PG typically |
Tax Strategy
Section 179 on Racking, Pressing, and Finishing Gear — Worked
If last year was strong and you’re about to write a check to the IRS — stop. Acquire qualifying equipment with as little as 10% down, finance the rest, and write off the full purchase price in year one. Section 179 covers it up to the annual cap; 100% bonus depreciation — made permanent in 2025, with no cap and no income limit — carries the rest.
At the top bracket, that first-year deduction can return meaningful tax savings — and for an established business with strong cash flow, it’s the difference between writing a check to the IRS and putting the same money into your own equipment. Your CPA models the exact numbers for your bracket and structure.
Worked scenario · top bracket · illustrative
You financed the machine and put down a fraction of its price — but you deduct the full price in year one. The write-off is bigger than your down payment, and the equipment keeps working the whole time.
Scales with your numbers
Illustrative only. Actual savings depend on your tax bracket, entity type, state conformity, and CPA guidance. Section 179 and bonus depreciation are elections your CPA makes for your situation; above the Section 179 cap, 100% bonus depreciation carries the balance.
Terms reflect credit, revenue, time in business, and each lender. Every file is unique — see what the desk structures for yours in the 60-second qualifier.
Bobby’s Take
“Apparel runs on the season — you either have the capacity to ship the order on time, or the retailer cancels and reorders elsewhere. $95K in cutting, pressing, and finishing gear is that capacity. A small down, the balance financed, and the full $95K is a first-year deduction. The line that ships the season and shrinks the tax bill at once.”
Bobby Friel · Founder · 20+ years in banking and finance
How It Works
From Application to Funded
One application, 70+ lenders competing, a dedicated specialist, and most files funded in days.
60-second estimate
Enter your numbers — no credit check, no documents. You see an estimated funding range on the spot.
A specialist is assigned
A real funding specialist — not an algorithm — reviews your file, usually within 24 hours.
70+ lenders compete
Your application goes to the marketplace. Competing offers typically land 24–48 hours later.
You pick the offer
Compare structures and terms with your advisor. No obligation until you choose to sign.
Funded in days
From same-day working capital to a multi-piece stack, most files fund in days — not the bank’s 60–90.
Underwriting
What Underwriting Looks At
Funding here leads with what your business actually does — your revenue and cash flow. The specialist desk reads the real picture from your statements, then matches it to the lenders most likely to fund it.
How you’re evaluated
Revenue-first
sized off your top line, not just your balance sheet.
Cash-flow driven
your bank statements show how the business really runs.
Bank-statement underwriting
even a down year is read off 4 months of statements.
Story-driven
a big new contract, a seasonal swing, a turnaround in progress: context the raw numbers miss counts too.
What to have ready
↳Had a loss year? It’s read off the bank statements — 4 months, not 6.
Start fast, finish complete
The operators who fund quickest come to the specialist review with these ready — but you don’t need all of it to start. Your signed application and bank statements are what unblock the review; the rest can follow as trailing docs. Real term sheets come once the lenders can see a true business overview, so the move is simple: get the application and statements in right away, and don’t let a missing tax return hold up your term sheets.
Credit, straight
Qualification
Who Gets Funded — and Who’s Not Ready Yet
A straight read saves everyone time — here’s the line between an apparel & textile file that funds and one that isn’t ready yet.
↳Time in business is a factor, not a gate — newer crews with strong revenue still qualify.
Not ready yet isn’t a no — it’s a checklist. Most of it is fixable in a quarter or two, and your advisor will tell you straight which gaps to fix before a file goes in.
The Operator's Guide
Apparel & Textile Wholesale Financing
A Timing Trap, Not a Credit Problem
Apparel wholesale is a timing trap. You commit $150K to spring collections in November. Your retailers don't order until February. They pay net-60. And they hold back 10–15% for return allowances. So you're out $150K for five to six months and might not collect the full amount even then. Banks look at fashion inventory and see risk. We look at it and see a business that's been selling through at 90%+ for three years.
One Application, 70+ Lenders
Then there are the trade shows. A MAGIC booth costs $25K between the space, travel, and samples, and last year it generated $400K in new accounts — try explaining that ROI to a loan officer who's never been to a showroom. We've funded apparel operators from $20K sample runs to $1M seasonal buys. One 60-second application, soft-pull review to start, and we don't make you wait until the season's already started.
Common Questions
Apparel & Textile Financing — Questions, Answered
Yes. Working capital and lines of credit fund pre-season commitments months before retail orders arrive. PO financing advances against committed retailer orders. A $150K pre-season buy can be funded through a combination of products.
Purchase-order and inventory financing front the production and import against the order itself. The order's value supports the structure, repaid as the buyer pays, sized on your revenue.
Working capital covers booth fees, travel, samples, and marketing with no restrictions. A $25K trade-show investment that generates $400K in accounts has obvious ROI. Funded in 24 hours.
Both. PO financing covers goods being produced and shipped; inventory financing and a working line cover what's landed and on the floor.
A line of credit provides a buffer for returns and chargebacks. Working capital covers the gap when retailers take 60+ days to pay. Both are designed for the uncertainty of fashion distribution.
No. Soft credit pull only — zero FICO impact.
Recommended Funding
The Products That Fit Apparel & Textile Work
Working Capital Loans →
Fund pre-season commitments and trade-show investments months before retail orders arrive.
Invoice Factoring →
Convert net-60 department-store receivables into cash despite return allowances.
Business Line of Credit →
Draw for seasonal collection buys and repay as retail orders ship.
Other Wholesale & Distribution Businesses