Thompson Ferrier found Invoice Funding to be the right solution to manage their inventory-related capital and increase their inventory orders. They are able to purchase more inventory, whether it’s adding to the size of the order, or adding new product offerings to their line. In Thompson Ferrier’s case, when revenue is increased, so is the net profit. Their fixed costs increase at a much lower rate than their revenue, so being able to sell more products results in higher profits for the business.

“With Clearco, we are afforded the ability to order and therefore sell more products. With Invoice Funding, we can create a 20% increase in sales volume which creates 40% additional net profit.”

• Raffi Arslanian, Owner, Thompson Ferrier

A company’s cash flow can only be reinvested to a certain extent as companies are capped at reinvesting with what they have on-hand. Clearco’s Invoice Funding allows for an additional capital resource. Thompson Ferrier has the ability to carry the capped fee as part of their product margin considerations. Raffi believes ecommerce businesses should be careful to consider the cost of capital when calculating product profit margins.

“My accountant has mentioned that I'm paying fees I wouldn’t have to pay if I used my own cash. To me, there is a big difference in giving up margin versus giving up a portion  of your company. Not only financially, but your time. I don’t need to dilute my focus and attention speaking with VCs and can instead focus on growing my business.”

• Raffi Arslanian, Owner, Thompson Ferrier

The other thing Raffi appreciates about Clearco is the ability to choose exactly how much they borrow. Clearco’s Invoice Funding can flex up and down  with Thompson Ferrier’s seasonality. Production of Thompson Ferrier products can take 3-4 months, which means sitting on paid-for inventory for a while until customers purchase.

“If I know I need to pay my supplier, then I go to Clearco. The balance gets paid immediately because it’s already approved. Then I can immediately place my order for my products. By the time I get the inventory and it goes up for sale, I can start paying Clearco during peak season. The anxiety level if I self-funded my inventory up-front would be high. It’s a lot easier and calming to know that Clearco is covering that initial 70% with Invoice Funding.”

• Raffi Arslanian, Owner, Thompson Ferrier

Thompson Ferrier shared more details about how their ecommerce business (and many others like it) work with suppliers. They must make payments on their peak  season or holiday season product months in advance. This means providing deposits to vendors as many as 8 months in advance. That leaves an immediate bill to pay of up to 70% for the inventory.

Thompson Ferrier states that Clearco has been an integral part of their growth. They are thrilled to have a funding partner that works within the confines of their unique business and can align with their needs.

“You have a lot of ecommerce owners that could use your funding.”

• Raffi Arslanian, Owner, Thompson Ferrier