Client: High street lingerie retailer

Client: High street lingerie retailer

high street - Client: lingerie retailer

Alleviating a cash flow bottleneck

The client is a large, well-known high street lingerie retailer with a turnover of £110m per year.

Famous for selling lingerie and sex toys, this client’s biggest problem is a lumpy cash flow.

After Valentine’s Day everything looks rosy but with appetite for lingerie slowing in the summer months, they are still faced with having to order new season stock in March which must be paid for in June ahead of the Autumn release in September.

To alleviate this obvious cash flow bottleneck, Woodsford TradeBridge stepped in to pay the client’s suppliers in Hong Kong and offer them extended repayment. The client could then absorb the cost of the finance into their supply chain by negotiating trading discounts. They do this either on volume purchasing or accelerated payment terms.

They now have the ability to test the cash flow appetite of their overseas suppliers, which have proved to be very favourable. They have successfully negotiated discounts of up to 3% within their supply chain. This has covered the cost of the Woodsford TradeBridge finance, offering them a very cheap (if not cost neutral) flexible financing option.

You can find out more about this finance solution and how it could help your business on our liquidity and supplier boost page.

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