Working capital unlocks 50% annual growth for medical device company
Company Baby’s on Broadway
Industry Medical devices
Headquarters United States
About Baby’s on Broadway
Inspired by her own experiences of new motherhood, Adelle opened Baby’s on Broadway to bring baby products to her rural Minnesota community. She dove into the world of insurance to take on sales of breast pumps and pediatric ambulatory devices.
Challenge
Medical device sales are a big business for Baby’s on Broadway. However, insurance reimbursements are unpredictable. As they waited up to 120 days for insurance payouts, the lack of cash created inventory shortages and stunted growth.
Financing with Slope
Adelle regularly purchases inventory with Slope’s 60-day net terms product, which when paired with her AmEx card offers her a 90-day float on her invoices. She often repays early, earning her prorated fees on each loan and freeing her credit line for immediate reuse.
Outcome
Slope has allowed Adelle to not only avoid inventory storages, but has freed up enough cash to enable 50% revenue growth in her first year using working capital. She’s since opened a second brick and mortar and expanded her online offerings.
Using cash or funds - doable but risky.
Slope allows me to keep a healthy bank balance all the time.
Well worth the fees that are charged.
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