IFA Conference Takeaways

Our Takeaways

Deals

Deal making is back. The market is primed for activity and strong companies coming out of the pandemic will find great opportunities to finance their brands. The fundamentals are still key, but overall liquidity is flowing and lenders are open for business.

Technology

Technology continues to change everything from consumer behavior to manufacturing and the finance world needs to stay on top of these changes to keep up with the innovative ways modern brands are doing business. The growth and continuing evolution of the Shopify economy, automated distribution solutions like driverless trucks, and the large number of consumers who made their first online purchase in 2020 are major drivers of brand growth and success. Lenders like Assembled Brands who know how to understand the advantages of technology will be the ones best positioned to help brands invest in growth in the post-Covid world.

Supply Chain

The supply chain isn’t fixing itself anytime soon. We heard again and again how many companies are struggling to source and supply inventory. One big box retailer stated that they are only receiving 40% of their confirmed PO’s in a timely manner. Companies will need to find the right partner to fund future inventory and purchase orders to continue stable growth trajectories.

Merchant Cash Advances

Merchant cash advances such as those offered by Clearco and Shopify Capital are showing up across the entire landscape in all industries. While these lenders make it easy to obtain a small and quick infusion of capital, the paybacks take a high percentage of daily sales resulting in high interest rates that inhibit future growth. Lenders need to get creative with paying off these loans since they reduce the cash flow of prospective clients. Brands who can qualify for less expensive growth capital will find that lines of credit tied to assets like inventory will better set them up for long term success.