A Working Capital Solution for the Next Generation of Brands

Introducing our credit offering for direct-to-consumer, e-commerce, and subscription companies

We launched CircleUp Credit Advisors last July and since then have originated over $40 million in credit to consumer product companies and small businesses. Something we’re always focused on here at CircleUp Credit Advisors is how to innovate and grow alongside our entrepreneurs to continue providing the solutions and resources needed to expand.

With the rise of direct-to-consumer and subscription models, we came to realize there are very few lenders today that provide solutions for this new category of brands born online. If you’re an entrepreneur reading this, perhaps you’ve felt this frustration firsthand?

Existing models to secure working capital hinge on metrics like accounts receivable, purchase orders and inventory, but that approach simply doesn’t work for newer direct-to-consumer and subscription models. In fact, many early-stage CPG companies are starting out in direct-to-consumer before moving into bigger retail and distribution channels. So how can companies secure the working capital needed to grow if lenders are not responsive to their business models? The industry has yet to adopt a solution to provide working capital that really fits this business model.

That’s why today, we are pleased to officially launch a new tailored credit offering for direct-to-consumer, e-commerce, and subscription companies.

As a startup ourselves, we know that your business moves fast. That’s why with our latest product, you’ll have the ability to ‘re-up’ on your line as the need for working capital arises. With Helio – our machine learning platform – we are able to identify and underwrite with our unique consumer insights, meaning a line of credit with CircleUp Credit Advisors can be approved seamlessly and increase as your business grows.

We’re launching this new working capital solution with VINEBOX as the first of what we hope will be many brands benefitting from our new D2C credit offering. VINEBOX is a fast-growing startup based in San Francisco, that delivers monthly, curated, wine-by-the-glass straight to your doorstep. To continue the company’s momentum into the rest of 2018, VINEBOX was looking for a lender that understood their strengths as a direct-to-consumer company and could tailor a working capital solution to their needs as a growing business.

“As a founder, you’re always looking for the best avenue to continue building the business. More often than not, credit can be that effective solution without sacrificing precious equity in your company, but finding the right lending partner is much easier said than done. At the onset, we were thrilled by the seamless and smooth application process and CircleUp Credit Advisor’s ability to tailor a working capital solution to match our specific needs. As Vinebox continues to grow and reach more consumers each day, knowing that CircleUp Credit Advisors is a partner that will grow with us offers significant peace of mind. CircleUp Credit Advisors truly understands what it means to build a consumer company, and this expertise makes them all the more unique.”- Matt Dukes, Co-founder

Our direct-to-consumer revolving credit lines apply a blended advance rate on average historical revenues and other eligible assets over a defined time period. The exact advance rate for each borrower is determined based on various fundamental factors and structure-related metrics, according to our proprietary direct-to-consumer lending model.

We couldn’t be more excited to offer a working capital solution to all of the great direct-to-consumer companies out there. If you want to learn more or are interested in partnering with us, please reach out to credit-bd@circleup.com or apply at circleup.com/credit.

Disclaimer: Testimonials may not be representative of the experience of others and are no guarantee of future performance or success. No individuals were compensated in exchange for their testimonials.

 

 

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