CUTS Maintains Impressive Growth Without Equity Capital
"Many brand owners believe you can only be successful by raising loads of equity capital. What they don’t get is that without a sound business, a focus on fundamentals, and a financial partner like Ampla who values that, you won’t be successful, period." - Carter Shae, CFO
CUTS Maintains Impressive Growth Without Equity Capital
CUTS is among a small minority of DTC businesses that have not raised any significant outside capital. While this independence has been key to their growth, it also presents challenges from a cash flow perspective.
Ampla worked with CUTS to provide non-dilutive growth capital and banking services to fuel product launches, including their new women's line and expanded men's collection. These initiatives require heavy investment from an inventory and advertising perspective, which Ampla's flexible Growth Line of Credit helps enable.
CUTS is also continuously diversifying their distribution strategy, with an eye to bring on additional wholesale relationships. Cash conversion cycles become elongated with wholesale accounts, and Ampla's Growth Line of Credit helps brands like CUTS close the gap and maintain a strong cash position.
The power of non-dilutive capital can not be understated for consumer brands, particularly in the current macro-economic environment. Ampla's Growth Line of Credit enables this independence and keeps founders in the driver's seat.
"Many brand owners believe you can only be successful by raising loads of equity capital. What they don’t get is that without a sound business, a focus on fundamentals, and a financial partner like Ampla who values that, you won’t be successful, period." - Carter Shae, CFO