Stock Finance for an Online Sports Nutrition Retailer
£240,000 · Ongoing · 3.5% over base + 1% facility fee. A fast-growing online sports nutrition brand was manufacturing products in batches, requiring large upfront payments to their contract manufacturer before any products were sold.
The Client
Fast-growing online sports nutrition brand
The Challenge
A fast-growing online sports nutrition brand was manufacturing products in batches, requiring large upfront payments to their contract manufacturer before any products were sold. Their growing customer base meant batch sizes needed to increase, but each larger batch tied up more cash for longer. The bank declined to extend the overdraft.
Our Solution
Doulton arranged a stock finance facility where the lender advanced funds against confirmed purchase orders from the manufacturer, with repayment triggered by customer sales receipts. The stock was held in a bonded warehouse monitored by the lender. The facility scaled automatically with order volumes.
The Outcome
Batch sizes doubled. Stock availability improved significantly - previously the brand had experienced out-of-stock periods that cost an estimated £85,000 in lost sales annually. The facility scaled from £240,000 to £380,000 within eight months as the business grew. Key highlights: Stock in bonded warehouse - clean security structure; Out-of-stock periods eliminated - £85k annual lost sales prevented; Facility scaled from £240k to £380k within 8 months as business grew.