Aurous Provides Funding for Sports Apparel Industry Client

Aurous was presented a client in the sports apparel industry with an existing inventory and factoring agreement in place. The inventory lender signaled a desire to categorically exit the apparel space, and requested the client find an alternative financing solution.

This dynamic presented Aurous with a unique challenge: to structure and enter into a quad-party agreement. The other parties accepted quickly.

To make this happen, Aurous provided payment guarantees and PO financing to the tune of $5.2 million. The client has a seasonal business with spring and summer inventory spikes. By servicing these PO financing needs, Aurous enabled the client to meet their 2024 obligations and achieve their sales.

Explains Head of Operations Jeff Sirchio, “We were able to navigate the quad-party agreement satisfying the AR lender very quickly, underwriting within 7 days. It’s not easy- it’s hard enough to navigate a tri-party agreement! But the client had urgent needs, and we were able to move swiftly to satisfy their supply chain with 7 vendors around the world. They were under the gun and had to ship everything for spring prior to Lunar New Year. The factories were uncomfortable with moving forward on the production without guarantees on the payment side, which Aurous was able to serve with a payment guarantee letter, based on its reputation.”

As a result of its swift and creative solutioning, Aurous was able to help its client meet 100% of its obligations on schedule- ahead of Lunar New Year.

Aurous will underwrite individual transactions between $100k and $20M, with no long-term contracts and no minimum utilization requirements. If your client needs creative problem solving, reach out:

Josh Sirchio
Senior Vice President, Sales
Aurous Financial Services
203.536.0825
josh@aurousfinancial.com