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Ecommerce
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May 7, 2024
How Thompson Ferrier uses Clearco’s Invoice Funding to create a 20% increase in sales volume which leads to 40% additional net profit
You provide the invoices. Clearco provides the funding.
The bank would offer Cecil & Lou, at most, a $150,000 line of credit. The bank does not understand their business model.
Clearco enables Cecil & Lou to spend $500,000 in 3 days to fund inventory. Cecil & Lou can continue to invest in the business. Clearco has improved our ability to order more in-stock items.
Cecil & Lou began as an auction in 2011 and still has a large pre-sale orders business. But due to shifting customer expectations, Cecil & Lou also launched in-stock purchases so customers can access products immediately.
“[Customers] are looking to get a product in 2-3 days. Clearco allows us to get our hands on inventory quickly by funding our inventory. We can serve these customers immediately and place orders with our manufacturers.”
Pre-orders are still popular for Cecil & Lou. The addition of instant purchases of in stock inventory allows their customers to easily plan for future occasions or grab an outfit last minute. It’s opened up a whole new customer segment and allows Ashley and Blythe to better understand who their customers are and what they need.
“We can use Clearco funds and get instant profit rather than wait on profits. The amount we have been funded by Clearco is paid off once we realize the inventory revenue so we never carry debt on our business.”
In the first quarter of 2024, Cecil & Lou notes that 60% of their product sales have come from in stock orders which Clearco has effectively financed, while 40% of sales reflect pre-sale orders on their site. The high growth in their in stock product sales has been a 180 from their auction style in the early days and complements their pre-sale orders.
“We have never had to take outside investors or give away a percent of our company. This is a huge benefit from working with Clearco - our company is ours.”
It’s been 13 years since Ashley and Blythe launched their company, and growth on all fronts has been exponential ever since. Clearco has been a proud partner of Cecil & Lou since 2022, funding their inventory, and enabling a new business model to take root and bring in additional revenue.
Clearco enables us to spend $500,000 in 3 days to fund our inventory, while we continue to invest in the business and tend to the everyday overhead of shipping, advertising, and paying bills. Clearco allows us to continue to reinvest in the business, and Clearco has improved our ability to order more in-stock items.
