For luxury footwear brand Ace Marks, managing inventory and cash flow during peak seasons is crucial to business success. With demand fluctuations throughout the year, founder Paul Farago has relied on strategic working capital partners like Clearco to keep his brand well-stocked and prepared for key sales events. This approach has helped Ace Marks not only stabilize inventory but also scale sustainably, even in the face of market challenges.

The Ace Marks Story: From Vision to Reality

Ace Marks is an online store selling a stunning collection of handcrafted Italian leather dress shoes, sneakers, shoe accessories, and more. They offer free shipping across the United States. Founder Paul Farago spent years in the luxury footwear industry before deciding to launch his own brand. His mission was simple: deliver a higher-quality shoe than what was currently available at the same price point.

“I believed I could deliver a better product for the $300 price point, and I wanted to produce out of Italy,” Paul says. That vision led to the creation of Ace Marks, an online store specializing in handcrafted Italian leather shoes, sneakers, and accessories.

The brand's journey began in earnest with a Kickstarter launch in 2016, which helped build a passionate community of early adopters. These initial customers became the brand's evangelists and played a significant role in Ace Marks’ success.

How Kickstarter Launched Ace Marks into Success

The Kickstarter campaign not only funded production but also fostered a loyal following. 

“All of a sudden, we had people fighting for us and believing in the brand.”

This devotion has lasted years, with many customers from the original campaign continuing to place re-orders.In fact, Paul says it was the Kickstarter community that got Ace Marks through the pandemic. Even as global shipping slowed to a halt, early adopters of Ace Marks defended the brand’s order times on social media. 

“They had a founder feeling of the brand, and a personal relationship with me.” 

Building Influencers from Early Adopters

This passionate community would soon be the basis of Ace Marks’ influencer campaign, which grew organically. Ace Marks was initially self-funded on credit cards and did not raise significant capital early on. Paul and his Chief Marketing Officer (CMO), Julian Gonzalez, spent their time making phone calls, engaging with a new network of influencers who they hoped would add credibility to the brand. The influencers had active blogs and email lists that converted well, meaning their audiences took successful actions—such as visiting the website, signing up, or making purchases—because of the influencer’s promotions. Paul notes that this was crucial for promoting the brand.

“The influencers we worked with really loved the product, and the audience trusted that.” 

Paul and Julian’s work paid off: influencer partnerships helped reach new customers. At the same time, the team focused heavily on SEO and building long-term brand equity, an approach that ended up being crucial during the pandemic when Ace Marks had to cut its marketing spend. 

“The website continued to drive business. People found us being recommended and it gave us Search Engine Optimization (SEO) value.”

Ace Marks Grows from an Ecommerce Brand to an Acquisition Model

After the pandemic, Ace Marks began acquiring footwear and apparel companies, as well as the logistics and marketing agencies necessary to manage these brands. With an in-depth understanding on how to grow Ace Marks through organic marketing channels, they knew they could apply these strategies and methods to other ecommerce brands. The company was strategic about these acquisitions. 

“We focused on brands that had potential but weren’t overhyped. Many of the brands we acquired had millions pumped into them but were generating less than  $5 million in revenue. We saw the opportunity to turn these into profitable businesses by scaling backend operations, from bookkeeping to customer service, and leveraging shared resources across all brands.”

Leveraging Working Capital for Seasonal Growth

As Ace Marks approaches its peak selling season, inventory is its first priority. Accelerating  demand for key colors and sizes—especially in brands like Jack Erwin—which have been out of stock for two years—means Ace Marks is due for a restock. Paul explains he needs to load up on all of the brands Ace Marks currently owns, as well as the newly acquired ones, in order to capitalize on high demand.

To effectively manage inventory and take full advantage of marketing opportunities—such as Black Friday sales or cross-marketing across the portfolio of brands—Ace Marks has been working with financing and funding partners like Clearco. These relationships are vital for securing the necessary funds to maintain optimal stock levels and ensure the company can meet customers' needs.

Being able to access funds when they’re needed most now helps Ace Marks to seize critical opportunities to build inventory – and the brand. 

“I’ve worked with various financing partners over the years. In 2017, I began working with Clearco, hoping they would see our business through both the ups and downs.” 

He adds that the Clearco’s receipt funding is a feature he feels is underutilized by his company.

 “Frequently, when I log in to make a payment, I see the option to fund receipts and realize I could have taken advantage of it earlier!”

Organic and Profitable Growth for the Future

Unlike many brands chasing rapid growth, Ace Marks is committed to sustainable and profitable scaling. Paul plans to manage his acquired brands with the same focus on profitability and long-term success, relying on trusted working capital partners to help fuel this journey.

“We’re not seeking outside capital that could dilute our discipline. Instead, we’re partnering with those who align with our vision for long-term sustainable growth,” Paul concludes.

As Ace Marks continues to grow and evolve, their story highlights the importance of adaptability, smart partnerships, and long-term strategy in the ecommerce space. By leveraging working capital solutions, they’ve been able to navigate the challenges of seasonal demand while staying true to their vision of sustainable and profitable growth.