In 2007, the husband-and-wife team of Ivan Rincon and Mayra Jimenez opened The Orchid Boutique, an online retailer of designer ladies’ swimwear. Based in the sunny South Beach are of Miami, the store is a regular for locals, and has a following of fashionable women all over who appreciate the unique designs available at The Orchid Boutique, which make them the envy of their fellow vacationers worldwide. Its full line of high end swimwear and accessories are available in the store and online and the company ships to 165 countries.
Determined to retain ownership of their company and control of their brand, Rincon and Jimenez personally financed their first years in operation. When the time came to expand, which required additional capital, the couple discovered banks did not understand the revenue peaks and valleys that can occur in retail, particularly eCommerce. In addition, the paperwork the banks required from loan applications left little time to conduct their day-to-day business. So, Rincon and Jimenez selected a Merchant Cash Advance (MCA) to enable them to order more product, allowing them to fulfill more orders. Unfortunately, their first loan option did not turn out to be a good fit.
Due to its structure, the MCA took 15 percent of the boutique’s sales on a daily basis. During peak season, that equaled thousands of dollars per day, affecting the couple’s cash flow and making it difficult for them to run the boutique. Eventually, Rincon and Jimenez came across Dealstruck.
“As a swimwear retailer we experience times of the year that are busier than others and Dealstruck understood that. For the first time, we found terms and a process that are transparent and reasonable.”
The Dealstruck mission is to provide small business owners with unique, appropriate, and affordable capital with honesty and transparency. And that’s exactly what Orchid Boutique found. Ivan and Mayra quickly realized they had made the right move. “This time last year, our MCA had us paying 15 percent daily. Our season starts getting crazy in mid-January as people plan for spring vacations. This year, we can keep our revenue for investing in the growth of our company,” said Rincon.
The two have begun adding staff and deploying marketing initiatives, including launching additional digital marketing campaigns to increase the boutique’s international online presence. Rincon and Jimenez received funding in a matter of days and were pleased with the process. “The transparent process lets you see everything that’s going on, and we are very comfortable knowing that Dealstruck understands the needs of our business and what we are trying to do,” said Jimenez. “Compared to MCAs and other loan options, Dealstruck had the best terms and was the most reasonable option for us.”