Sherpani sells functional and fashionable bags, purses, and travel accessories for women on the go. They have been an industry leader in the use of recycled fabrics, non-toxic dyes, fair labor agreements, and chemical restrictions long before these practices were made mainstream. Ultimately, their mission is to empower women in everything they do.
Sherpani experiences a significant time gap between when they need to pay manufacturers for inventory and when they actually realize the revenue from selling this inventory. Payment terms to their manufacturers are typically 30 -45 days, and Sherpani doesn’t generate revenue from the inventory until they sell it about 6 months later. This leaves the company exposed to tight cash flow positions, with Ed searching for a solution to bridge this problematic time gap. Ideally, he wants to delay the direct impact of the inventory expense until the revenue is generated.
Clearco can help Ed bridge this time gap between paying for inventory and realizing the revenue by directly paying Sherpani’s manufacturer for the invoice. Ed submits his inventory invoice to Clearco and can choose the payment term from 1-6 months. As Ed expects to sell this inventory in 6 months, he is able to choose the payment term that matches the expected revenue timing to maximize profit. Clearco debits Sherpani via equal weekly payments, allowing for predictability and optimal planning. Sherpani no longer experiences cash flow fluctuations and can confidently order their inventory, without having to plan for months for unpredictable cash flow, until they sell it.
You’ve worked hard to build your business, you should own 100% of it.