A $1 million facility for a Utah bicycle manufacturer
For a Utah-based manufacturer of high-end bicycles and components, keeping inventory ready means coordinating payments to vendors in the US and overseas. Some require payment upfront, while cash can remain tied up in the business for approximately 120 days.
An existing bank line served a different need
The company already had bank financing, used primarily for equipment and capital investments. It needed additional working capital to support vendor payments and inventory alongside those longer-term investments.
That distinction matters for a business whose seasonal activity ramps up from January through April. Purchasing and inventory needs can build before the cash from sales returns to the business.
Additional capacity for vendor payments and inventory
Drip Capital approved a $1 million facility to support those working-capital needs. The additional capacity was intended to complement the company’s existing financing and help it manage the gap between vendor payments and cash collection.
The company has begun using the facility. The $1 million figure represents the approved credit limit; it does not represent the amount drawn.