Christmas Stock Finance for a Toy Wholesaler in the West Midlands
£420,000 · 5 months (Aug--Dec) · 4.2% over base. A toy wholesaler supplying independent toy shops, garden centres, and online retailers needed to build up substantial stock from August ready for Christmas.
The Client
Toy wholesaler supplying independent toy shops and garden centres
The Challenge
A toy wholesaler supplying independent toy shops, garden centres, and online retailers needed to build up substantial stock from August ready for Christmas. Their suppliers - primarily based in the Far East - required payment on shipment, three months before the peak selling season. The wholesaler's existing credit line was insufficient for the volume needed.
Our Solution
Doulton arranged a seasonal stock finance facility of £420,000, drawn from August as stock arrived and repaid from December sales receipts. The stock was comprehensively insured and the lender monitored inventory levels monthly. The facility was structured to be self-liquidating as Christmas sales converted stock to cash.
The Outcome
Full Christmas range purchased. No stock shortages during the peak period. Sales revenue in the December quarter was the highest in the wholesaler's history. Facility fully repaid by 15 January. Key highlights: Self-liquidating seasonal structure - repaid from Christmas sales; Full Christmas range purchased - highest December quarter on record; Facility repaid by 15 January - clean and disciplined structure.
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