Factoring just advances payments from big retailers.
We fund all your inventory.
Factoring only advances against receivables from large, creditworthy retailers — your DTC, Amazon, and own-store sales don't qualify, and small wholesale accounts get steep haircuts. We fund 100% of the inventory invoice and you repay only as the product actually sells, across every channel you sell through.
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— THE PROBLEM WITH FACTORING
Factoring frees cash you've already earned.
And it only works for invoices from big, creditworthy retailers — not the DTC, Amazon, and own-store sales that drive a modern consumer brand.
Eligible AR only
Only big-retailer invoices qualify. Factoring advances only against receivables from large, creditworthy buyers like Walmart or Target. Your DTC, Amazon, and own-store sales aren't eligible at all — and invoices to smaller mom-and-pop accounts carry much lower advance rates or get turned down.
Wrong asset, wrong time
It funds shipped receivables, not inventory. Even on eligible invoices, factoring only frees cash after you've shipped. A consumer brand's crunch is at the start of the cycle — buying and landing the inventory you haven't sold yet.
Recourse
The risk and the optics come back to you. Notification factoring reroutes your customers' payments to the factor; recourse factoring claws back invoices that go unpaid. Either way, you carry the relationship and the credit risk.
— HOW IT WORKS
Repayment that matches your inventory cycle — not a calendar.
We fund the full invoice on day zero. You don't pay anything until the product lands. From there, we take a small percentage of daily net sales until we're repaid. If sales come in slower than projected, the IRR comes out of our return, not yours.
— FACTORING vs. INVENTORY FINANCE
| — Compare | THEMInvoice Factoring | ELEPHANT HERD CAPITALCycle-Matched Inventory Finance |
|---|---|---|
| What it actually funds | Invoices you've already shipped (AR) | Inventory before it sells |
| Works across DTC, Amazon, and own-store sales | No — only AR from large, creditworthy retailers | Yes — funds inventory regardless of channel |
| Funds sales to smaller / mom-and-pop accounts | Low advance rates or ineligible | Yes — we fund the inventory, not the invoice |
| Solves the inventory cash crunch | No | Yes |
| Invisible to your customers | No — payments often rerouted to the factor | Yes — your customers never know |
| Credit risk if a buyer doesn't pay | Yours, under recourse factoring | N/A — repaid from your own sales |
| Repaid only as product actually sells | No | Yes |
| Fees don't compound on slow collections | No | Yes |
| Best used for | Brands with large wholesale receivables | DTC/consumer brands funding inventory |
— GET STARTED
Let's see if our funding lines up with your inventory cycle
Send us your last 12 months of revenue, your buying plan, and a 3 statement model. We'll come back with a facility size and structure within a week.
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