Growth Financing for Supply Chain Re-integration

With supply chain vulnerabilities everywhere, many businesses are making strategic changes to how they operate their supply chains. Instead of a 100% outsourced approach, it is smart to consider reclaiming a portion of your supply chain to provide greater execution strength. There are many sources of funding to help you make this supply chain transition. Watch our latest webinar to learn which growth investment option is best for you.

Hi everyone welcome back to our attract capital webinar series i’m your host sarah and i’m here with attract capital ceo dave barnett hello so today we are talking about growth financing for supply chain reintegration so can you give us to start off a few reasons why a company would reintegrate their supply chain absolutely sir so a lot of companies have overly

Outsourced their supply chain which means that they don’t hold inventory they have third-party logistic providers or other outsourced warehouse people uh manage their inventory for them they don’t make their own product their product gets made in china or other parts of the world so essentially a lot of these companies they don’t have inventory they don’t have

A supply chain and so they they only have in inventory orders that they’ve sold and given that we’re having a lot of supply chain problems in the united states right now a lot of companies can’t get product it’s really important for businesses to start thinking about reintegrating their supply chain not going full 100 reintegration but picking some things

That they should probably have domestic suppliers for they should probably have their own warehouse because you can’t be beholden to a completely outsourced supply chain given what’s going on in the world right now so do you think that like all of that has actually shown like a trend in supply chain reintegration do you think more people are doing it now i’ve

Certainly seen a trend and it started under the trump administration where there were tariffs with china and people were moving to mexico because they viewed that as much closer to the domestic market and i think it’s happening right now because people i’m actually a lot of the companies that we work with are basically uh stocking a lot of inventory whereas they

Would have run lean they’re making multi-million dollar orders because they can’t get product and they don’t want to be the ports are backed up and it’s hard for them to get inventory from their their distributors because their distributors are running really out of uh inventory as well so i do think that’s happening as a trend sarah okay um so i would assume

That there is some investment needed seems like you know pretty expensive process so what kinds of investments do they need and how does growth financing help okay so you’re going to need to have enough money to stock a lot of inventory you’re going to need to be able to afford the additional opex associated with more rent for a warehouse you’re going to have to

Buy some capital expenditures for the equipment if you’re making something if you’re going to bring part of what you are currently made out of the house in the house you’re going to need the equipment and the people to be able to make it and the thing is all these all these things that you’re going to need to invest in are long term strategic investments so you

Need to match that with long-term strategic capital so the growth financing that we recommend because these are not things that that are going to turn around quickly for you so the best forms of capital for this are mezzanine financing or other cash flow loans that basically will give you a lot of money up front based upon your ebitda your cash flow growth and you

Can pay the principal off all on the back end which is a very powerful thing for a company and this growth financing this mezzanine debt and the other cash flow structured financing it can facilitate a major scale up and it can give you the ability to grow your revenue to really scale even and attract the economic market which we’re in right now would you just to

Wrap things up be able to again tell people what growth financing can actually get them like what why they actually would probably need it in order to facilitate this sure well because without the growth financing it costs a lot of money to reintegrate your supply chain so without the growth financing you’re not going to be able to do a large enough reintegration

To make a difference so growth financing is absolutely critical if you want to do a supply chain integration because it will allow you to raise the requisite amount of capital needed to affect it all right well that sounds pretty good so uh we will see you in our next webinar thank you very much have a good day thank you

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Growth Financing for Supply Chain Re-integration By Attract Capital