As an earlystage hardware company, everything you do is competing for your limited cash—product development, marketing, operations, and more. Most fundamentally, though, you need to build the goods to ship to your customers, and freeing up the working capital for this critical activity can be a huge challenge.
popSLATE was facing this very situation with our second generation product, and we were lucky enough to discover a unique solution: the DSCN Inventory Financing program. What may sound complicated was actually a very straightforward deal. DSCN loans the necessary cash for creating inventory, in return for monthly payback of the loan plus profit sharing as the product ships.
While the direct benefits are obvious, we realized that the true value was having critical cash to grow our business and our revenues. Instead of pouring every cent we had into building inventory, we have been able to:
• accelerate R&D to expand our product portfolio
• invest in customer acquisition to expand our revenue
• purchase larger supply volumes to secure more favorable unit pricing
In the end, inventory financing has allowed us to allocate much more spend to high growth areas of the business, without the need for dilutive financing.