Cash Flow Optimization and Business Expansion
A medium-sized embroidery house sought to grow its business by collaborating with larger clients, but the requirement of 60 net payment terms threatened their cash flow. Melengo provided a sustainable solution by offering financing options that allowed the embroidery house to scale operations without compromising their financial stability.
The Problem
As the embroidery house aimed to expand with corporate and government clients, they faced the challenge of meeting the 60 net payment terms demanded by these larger customers. This would tie up their cash flow, hindering essential operational needs such as payroll and marketing. Their reliance on short-term loan operators with high fees and loan minimums was no longer a viable option. Discovering Melengo as a centralized marketplace for suppliers, the embroidery house sought a more efficient solution.
The Approach
A comprehensive solution in a brief timeline
In a productive forty-minute debrief, the embroidery house engaged in a conference call with Melengo to explore financing options for ongoing and future projects. Melengo recognized the potential for the embroidery house to double its annual revenue within a year by securing a short-term financing partner for larger clients. After a thorough review of financial data and open purchase orders, Melengo provided financing for the available orders, offering a breathing space of up to 90 days.
Value Delivered
Flexible financing fueling exponential growth for a small business
With Melengo's support, the embroidery house received swift approval for each project by completing a questionnaire, ensuring a streamlined financing process. Melengo's financing solution did not involve a percentage of daily sales, subscription fees, or loan minimums, alleviating the financial burden. Understanding the embroidery house's operational requirements, Melengo established a sustainable payment schedule, enabling the embroidery house to attract larger clients, expand its workforce, and foster significant business growth.
Create world-class products with Melengo
Brands face significant challenges when it comes to manufacturing their products. Lengthy lead times, high costs, and coordination issues with suppliers can hinder their progress. That's where Melengo comes in.
With our integrated network of manufacturers in the Americas, we offer a one-stop shop for product manufacturing. Leveraging the nearshoring trend and our industry expertise, we help brands launch new products faster, more sustainably, and affordably. Our streamlined platform ensures real-time communication and simplifies manufacturing workflows, from design and development to sourcing raw materials, components, and manufacturing.
Partner with Melengo and overcome manufacturing challenges with ease. Say goodbye to lengthy lead times, high costs, and coordination headaches. Experience a seamless manufacturing journey that empowers your brand to thrive. Reach out to us today.
