Would you have guessed it? Men are buying more clothes than ever. Last year, sales in the fashion industry sector rose by 4.6 percent. This is the biggest increase in the past ten years. More people bought clothes last year than in previous years and it’s mainly the men who are buying. That’s good news! Isn’t it?
Growth in men’s clothing
This men’s clothing must have been bought over the internet. We can understand that. As in general you often see men with bored expressions following women around in the shopping street, and often enough you see women in the men’s department buying clothes for their husband. Most men simply want to filter down what they are looking for, then just go and buy it and not spend hours looking for something that might be of interest. Contrary to women. These growth figures prove this point yet again.
Because of this increase in sales in the fashion industry, more clothing is being produced. As a result, fashion manufacturers will have to take more orders. However, this is not possible for manufacturers that produce their clothing in China.
Factoring in the fashion industry
You, as a fashion manufacturer, will surely recognise the following situation: you produce clothing in China, where you have to pay 30% up front when you place the order and the remaining 70% when the goods are shipped. The invoice, with a 30-day payment term, is sent to the debtor as the goods are being loaded. Because of this, you have to bridge the period from the moment the goods are produced until the payment of the invoice. This leads to a liquidity shortage. Because there is a liquidity shortage, no new orders can be made, because there simply isn’t any money for it at that time. So, because the debtor has a 30-day term of payment, there isn’t any working capital at that moment to pay the manufacturer. And that’s where Togather comes in.
The solution: factoring 2.0
Togather can provide working capital, so that you – using the example of the fashion manufacturer – can immediately pay the factory in China. And then you can immediately place a new order with the factory. Because Togather makes working capital available, the temporary liquidity shortage is solved. This can be done by using factoring 2.0 by Togather. Through Factoring 2.0 you can receive 95% of the outstanding invoice amount within 2 days. And this includes any existing outstanding invoices you may have! Because of this, there is no need to wait until the end of the payment term, and you can immediately accept more orders.
Because of the growth in sales within the fashion industry, as well as in other sectors, Togather has reacted to the current demand for extra working capital. With factoring 2.0 by Togather you don’t have to wait for your payment. You don’t have to worry about an uncertain cash flow. You can focus on achieving your goals. Leave the financial stuff to us and focus on your ambitions!
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