At its inception, the company focused on Dutch independent retailers. It soon found its way abroad. In itself, the business model was simple: a complete collection was designed twice a year, after which buyers came to the showroom in Badhoevedorp to view the collection and place their orders. At the end of each selling season, orders were collected and production orders were placed in the Far East and Turkey. After 3 months, the pre-ordered goods arrived and were delivered within weeks. Due to the strong seasonal nature, flexible financing was needed. This was provided: the house banker was willing to issue Letters of Credit to the suppliers based on the order book, and after the goods were delivered to the buyers, the invoices were advanced by the factoring company. As Dstrezzed held little inventory, there was no need for inventory financing.
Growth
Dstrezzed's collections caught on and the company developed well. The first own shops were opened and in recent years, the company invested heavily in its own webshop and also became active on so-called marketplaces. Think Zalando. This allowed the company to continue to grow steadily, but in the process it also faced the fact that the average stock increased with the company's growth.
Better financing structure
The existing banker could not fill the resulting financing need. In consultation with Xolv Finance's specialists, a better financing structure was sought. Eventually, ABN AMRO ABF believed in the company and was willing to provide suitable financing. This consists of financing on 80%'s insured debtors, supplemented by financing on 60%'s paid inventories. The bank is also willing to finance the sailing stock. This new financing will allow Dstrezzed to resume unfettered operations and focus on further expanding the business in Europe.
