Clearco Funds Ettitude

You provide the invoices. Clearco provides the funding.

The Business Problem: 

Ettitude founders, Phoebe Yu and Kat Dey, found themselves needing to bridge the gap in cash flow during challenging ecommerce periods such as Q3. Ecommerce brands like Ettitude must stock up on inventory in advance of the holiday season in Q4 to ensure their products are ready for consumers' holiday shopping. While operational spending rises for inventory and marketing, consumer purchases remain low until the holiday season begins. Ettitude faced rising operational costs alongside a reduced level of gross sales and incoming revenue. This situation created a pressing need for access to working capital, ensuring the company could avoid tapping into cash reserves allocated for keeping the business afloat. The high inventory costs and lagging customer purchases during this difficult period put a strain on cash flow, making the business choose between preparing for the holiday season or avoiding using resources meant for core operations.

The Funding Solution:

Seeking out a partner to support their dynamic operations, Ettitude connects with Clearco and quickly leverages Clearco’s flexible funding solutions. With Shopify already facilitating easy website management, the brand continued its direct-to-consumer (DTC) operations while Clearco integrated seamlessly with their existing Shopify merchant account, providing timely funding for invoices and expenses.This funding flexibility allowed Ettitude to allocate resources for inventory, marketing, and other upfront costs, while Clearco monitored revenue directly within the Shopify platform. As a result, Ettitude was able to place large orders in preparation for the holiday season and achieve high-growth by also launching their B2B ecommerce store, opening new revenue streams and focusing on expansion rather than simply maintaining operations. 

Ettitude Partners with Clearco’s Working Capital for Seasonal Prep

Ettitiude, a next-generation materials innovation company, committed to creating the most sustainable and luxury bedding & bath linens, meets the increasing demand for top of the line products while further investing in their innovative sleep technology. When faced with a challenging Q3 period where the company’s incoming revenue did not fully support their future inventory expenses in preparing for holiday season peaks, Ettitude partnered with Clearco to help manage their cash flow. Clearco was able to support the Shopify merchants by integrating directly into their Shopify account, monitor their revenue, and provide fast funding of invoices. This partnership ensured the business could maintain strong operations and fund inventory expenses leading up to the holiday season - without having to surrender their expansion goals.

“Working capital enables a brand to grow faster. Otherwise, we’d have to use capital we would have spent on the basics of keeping things afloat. With working capital, especially during low season, it’s been helpful to bridge the gap.” - Kat Dey, Co-Founder & President Ettitude

Due to Clearco’s partnership in supporting ecommerce businesses growth during challenging periods, Ettitude was able to move the industry standard forward, investing in delivering quality products to consumers and improving the health and well-being of their customers. Ettitude’s products, scientifically proven to improve sleep quality by 43 extra hours of sleep per year, also promote sustainable practices by using low-impact and high-performing fabrics such as their patented CleanBamboo technology. By gaining quick access to working capital through Clearco’s flexible funding solutions, the B Corp certified ecommerce brand continues to deliver sustainable luxury products that are 100% free of toxins and reduces CO2 emissions. 

Clearco’s Role in Ettitude’s B2B Expansion & Further Innovation 

With Clearco’s working capital support, Ettitude is able to shift their focus from a DTC operations to expanding into the business-to-business (B2B) market, selling their patented sustainable fabrics to luxury brands, designers, and other businesses. This next step unlocks significant growth opportunities, opening up new revenue streams to rapidly expand their business. The ecommerces’ new B2B partnership revenue is forecasted to surpass DTC revenue in just 18 months. By providing fully traceable, sustainable, and cost-effective solutions, Ettitude is positioned to disrupt the textile industry and set a new standard for eco-conscious textile production.

Clearco’s Invoice Funding and flexible repayment terms empowers Ettitude to conduct further research and development by employing chemistry focused scientists to further refine and develop their product offerings. Their innovative sustainable products have caught the eye of top luxury brands, tech giants and luxury hotels committed to sustainability and align with Ettitude’s brand mission of giving back to the earth by using regenerative resources. With this efficient access to working capital, ecommerce brands alike are empowered to enter high-growth stages with the peace of mind that Clearco’s invoice and receipt funding will support their efforts without the typical barriers of traditional funding sources.

“Working capital has been crucial for helping Ettitude to maintain our focus on sustainability and global expansion. It provides us the financial flexibility that we can invest in new products, new technology development, and acquire additional inventory to grab sales opportunities.” Phoebe Yu, Co-Founder & CEO of Ettitude

🎥 Watch Phoebe share how Clearco’s hassle-free funding enabled Ettitude to achieve its B2B expansion goals:

As Clearco’s Invoice Funding allows Ettitude to scale and focus on global and product expansion, the company has secured patents for their innovative sleep technology. Ettitude’s products, driven by scientifically proven sleep-enhancing technology, support industry-wide sustainability goals and employ a fully traceable and closed loop system. Now partnered with Clearco’s flexible funding, Ettitude can focus on securing new patents, advancing innovations, and driving sustainability in the textile industry—confident that Clearco is managing their funding needs and supporting their growth trajectory.