Express Pumps Pool Toy Innovator with Three Working Capital Facilities over a Decade of Inflating Sales

This is a story of how Express delivered over a decade of sound facilities and financial advising to an inventor, wholesaler, and provider of fun, innovative pool and water toys. The relationship is still going strong and floating along…

Humble Beginnings: From Chess to Checkered Board Shorts & Beyond

The client previously created and sold a successful electronic chessboard company. For his next venture, he decided to take his cerebral talents outdoors and carved a niche in the pool accessory market with innovative design, mindful safety features, and fun-focused pool and water products for all ages.

From the start, the company sought to enrich aquatic experiences with unique floaties and accessories, catering to a growing customer base eager for outdoor recreation. As their sales increased, so did the pace of their innovation. Over a decade of steady growth, their sleek product offerings gradually grew to encompass fun outdoor products for all terrains in all seasons!

Enter Express – Increasing Trade, Infusing Capital & Making a Splash

In 2014, the client was a budding enterprise with a promising vision but limited resources. With sales at $3.5 million and growing, they faced the classic growth challenge: how to scale operations without compromising quality or financial stability.

Recognizing the potential in their business model, Express dove into the deep end and offered a lifeline with factoring, purchase order funding, and, after a few years of history, an inventory facility expansion to accommodate the clients’ robust and steadily growing B2C e-commerce sales.

Factoring: Working Capital Cushion to Even out the Wake

Express’ factoring services played a crucial role in the clients’ growth. By converting their invoices into immediate cash, the client obtained working capital for day-to-day operations and paid suppliers whose terms expired before the retail customer invoices were due. By alleviating cash flow issues and improving its status with suppliers, the innovators could focus more on sales, operations, product development, and marketing.

Purchase Order Funding: Inflating UP & Making Waves

With Express’ purchase order funding, the client took on larger orders without the fear of capital constraints. Many of the clients’ suppliers didn’t offer any extended credit or payment terms, especially as the orders got larger. Some wanted payment upon shipment, which created a gap where supplier payments were due before the client could deliver to their customers and thus generate invoices for factoring. PO funding seamlessly bridged that gap.

Inventory Financing: Meeting Market Demand

As the client’s business evolved to include multichannel e-commerce and B2C verticals, ETC’s inventory financing proved instrumental. After gaining enough history, trust, and understanding of the client, Express created an inventory facility that allowed the client to stock up on popular items, ensuring they met the surging online demand without depleting their resources or taking on too much inventory or risk.

Express balanced its investment in the company’s growth while ensuring the client directed their profits towards building cushion and capabilities within the business, enough to weather the growing pains and disruptions that all successful businesses eventually face.

2021: A Milestone Year

By 2022, after years of steady growth, the client’s sales hit over $25 million, a testament to their resilience and the efficacy of ETC’s financial strategies. They emerged as a dominant player in the pool accessory market, with a diverse product range and a strong customer base.

The Future: Floating Along with the Current

Looking ahead, the client, with ETC’s continued support, is set to explore new markets and innovation avenues. They are poised to redefine the pool accessory industry, driven by creativity and a solid financial foundation.

A Partnership That Reflects Success

Express Trade Capital’s role in a remarkable journey from $4 million to $25 million in sales is a success story that highlights the power of strategic financial partnerships. ETC’s tailored financial solutions, combined with the client’s innovative approach, have set a benchmark in business growth and sustainability. This partnership not only reflects a shared vision for success but also demonstrates how targeted financial support can turn potential into prosperity.