Clearco has secured a $100 million asset-backed financing facility from Macquarie Group that is expected to support approximately $900 million in funding to ecommerce brands over the next two years.
The facility expands Clearco’s ability to provide non-dilutive capital to growing ecommerce companies as their funding requirements become larger and more complex.
Qualified brands can access up to $10 million in funding with estimated terms ranging from four to 12 months.
Clearco plans to use the additional capacity to support businesses expanding across direct-to-consumer, wholesale, retail, marketplaces and social commerce.
Funding can be used for initiatives including inventory purchases, marketing, major purchase orders and other growth investments.
The new facility is designed to allow Clearco to provide larger amounts of capital over longer terms as ecommerce businesses increasingly operate across multiple sales channels.
Macquarie’s New York-based Fixed Income and Currencies team, which is part of its Commodities and Global Markets business, provided the financing.
The transaction represents the next stage of Clearco’s growth as it seeks to expand access to flexible capital for ecommerce operators.
Clearco provides non-dilutive financing, allowing companies to obtain growth capital without giving up ownership in their businesses.
The company’s financing does not require personal guarantees or all-asset liens for qualifying brands.
Clearco said evolving ecommerce models are creating greater capital requirements for operators.
Brands that once concentrated primarily on direct-to-consumer sales are increasingly making larger inventory commitments while expanding into wholesale, traditional retail, online marketplaces and social commerce channels.
Those businesses may also need additional working capital to support large purchase orders or marketing investments before the resulting revenue is realized.
The Macquarie facility is intended to give Clearco additional capacity to fund those investments while providing longer repayment periods for qualifying companies.
To date, Clearco has provided more than $3.3 billion in funding to over 11,000 businesses.
The latest $100 million facility could significantly expand that total if it supports the approximately $900 million of funding Clearco anticipates deploying over the next two years.
KEY QUOTES:
“Ecommerce growth no longer happens through a single channel. Brands are making larger inventory commitments, expanding across wholesale and retail, and investing in new ways for customers to discover and buy their products.”
“This facility gives us the capacity to support those investments over longer terms and grow alongside ambitious operators as their businesses become more complex.”
Andrew Curtis, CEO of Clearco
“Clearco combines deep ecommerce specialization with the disciplined underwriting required to serve this market at scale.”
“This facility demonstrates Macquarie’s ability to deliver tailored financing solutions across a range of asset classes, and we are pleased to support Clearco as it enhances access to flexible capital for ecommerce brands.”
Eli Nafisi, Senior Managing Director in Macquarie’s Commodities and Global Markets Business
