$3.5MM Accounts Receivable Facility Fuels Apparel Growth

Sallyport Commercial Finance is pleased to announce the successful funding of a $3,500,000 Accounts
Receivable financing facility for a well-established apparel company focused on expanding its core
denim business.

The company required a new financing partner after mutually agreeing to exit its existing banking
relationship. Despite continued growth and strong market opportunities, its incumbent lender was
uncomfortable with the current customer concentrations in the facility needed to support the
business’s evolving working capital requirements.

Operating within the Apparel sector presents unique cash flow challenges, particularly due to extended
production lead times and significant upfront costs associated with fabric procurement and
manufacturing. With production lead times stretching five to six months, the company must make
substantial investments in raw materials long before finished products are sold and invoices are
collected.

The new $3.5 million Accounts Receivable facility from Sallyport will provide immediate working capital
to support vendor payments, fund ongoing production cycles, and strengthen supply chain operations.
The financing will also enable management to move forward with growth initiatives and new programs
that had previously been delayed while securing a new funding relationship.

The opportunity was introduced through a trusted broker relationship. While several alternative
funding providers were considered, Sallyport’s extensive experience in asset-based lending and deep
understanding of the apparel industry’s working capital dynamics helped secure the partnership.

“We are pleased to support this apparel business with a $3.5 million accounts receivable facility at a pivotal stage in its growth” said Nick Hart, President of Sallyport Commercial Finance. “Companies in this sector face unique working capital pressures, particularly around long production cycles and significant upfront fabric and supply chain costs. Our solution provides the flexibility needed to manage those demands, stabilize vendor relationships, and maintain production momentum while positioning the business to capitalize on their new opportunities”.

With enhanced liquidity and a flexible financing structure in place, the company is well-positioned to
execute its long-term strategy of growing its denim business in a more profitable and controlled
manner while continuing to meet the demands of an evolving marketplace.