What's Kick Further?
Kick Further is a platform for retailers, wholesalers and manufacturers to finance the acquisition or creation of inventory.
For example, let's say you are an online retailer of ski goggles. Its main season is just around the corner, and you need at a price of $ 35 per pair to purchase 300 pair of glasses for a total of $ 10,500. Unfortunately you do not have the money. Why? Since most banks do not make loans of this size. Your primary options are as follows: to pay with a credit card (at interest rates of 15 to 20%), a working capital loan (at interest rates of around 40%), or to finance the acquisition with a merchant cash advance (at interest around 80% Price ).
Kick Further aims to offer a more attractive alternative to these options. Conceptually Kick Further a crowdfunding platform for small businesses to finance the purchase of inventory. Technically, the buy "backers" inventory and to create a program related to the "mark" (business), where they again get the cost of the inventory and a certain percentage of the profits. The practical consequence of this being a program relationship is that when a company to pay is not willing or able advisers could decide ownership of the inventory.
I recently had a chance to talk with the founder of Kickfuther, Sean De Clercq. The following Q & A is reconstructed from my notes and is not a transcript of his exact words. For a full review of Kick Further for small businesses can be found here.
What problem tries Kick Further to solve?
I was a merchandiser who sold to a large mail order companies. Of course we had to pay for the goods from our manufacturers. Typically, manufacturers require 50% deposit with order and 50% upon delivery. After the mail order company received the goods, we would have to wait months paid. If too large retailers to sell, it is fairly common for small businesses have to wait up to 0 days to be paid. In the case of our company, we were often in a position where we fund as much as $ 70,000 for several months.
Traditional financing institutions tend not fund these loans. The newer alternative lenders are sometimes willing to do this funding, but they charge interest rates that eliminate any gains from the transaction. The rates do not reflect the fact that there is a physical good that can be sold to help finance. Kick Further, the solution of the problem the bill is financing for small businesses through more companies allow the financing at a reasonable price to get.
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Who collecting for money can qualify by Kickfuther
[? In a short time we had to finance more than 100 companies use Kick Further asset purchases. The smallest transaction was $ 00 and the largest $ 102,000. Unfortunately, a large part of the applications that we receive are for companies that are not yet in operation or are looking for funding not to inventory related.
A business plan is not listed enough on the platform. For a manufacturer, we have to see that they have successfully made and sold a product run. For retailers, we look after several months of sales history for the type of product that they want to finance. At this point, we do not look at the credit scores of business or entrepreneur, but we are in the process of adding these to our due diligence.
What happens if a business does not pay their donors on a timely basis back?
Depends on what to decide to do the backers. The advisers have the inventory, so they can choose the brand to give more time to pay them back or have take Kick Further control of the inventory and try to sell it. There are sometimes very real reasons for the delayed payment. For example, there was in the port of Los Angeles, a strike, a huge amount of inventory come from China to the United States prevented. The supply of inventory was one of the brands greatly delayed, financed by Kick Further. Your backers decided to give them more time. One of the advantages of by Kick Further financing is that you, rather than the lenders have to do with a community.
Sean De Clercq, CEO of Kick Further
Before kick start Further, Sean De Clercq a merchandising company was carried out , Although sales grew in its second year by 50% to $ 1 million, he fought a credit line to secure to fund its asset purchase orders. At the same time, he recognized Sean earned less than 1% in his savings account - and he noticed the explosion of crowdfunding sites. With these two insights, he saw a chance average Earn access to lucrative investment opportunities via crowdfunding to Inventory . After more research and a team to do assembly, he went for the Boomtown Accelerator Program Boulder. Since then, Sean has focused on rapidly scaling Kick Further, the future of finance.
Need some money for your business? Click here to get our free guide.
How to get a Small Business Loan
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