The uncertainty created by the COVID-19 pandemic has driven many companies to take a harder look at their business partners and vendors especially when it comes to critical support and resources like business capital. LYV LIFE, Inc., which does business as Cora, was one of those companies. Its leadership knew they would need liquidity to support the company’s rapid growth but wanted to be sure they chose a reliable lender with deep access to capital and a strong financial track record.
Cora is a provider of ethically sourced, organic, and innovative feminine hygiene products sold both through traditional retail channels and direct-to-consumer through an online customizable subscription model. As part of their mission, they also provide free products and health education to girls and women in need globally.
Cora Sought a Stable Lender in Uncertain Times
Cora was founded on a platform of advocacy for health and equality of women and girls globally and as a trusted source for pioneering products. The company is making a mark on the market and needed liquidity to support rapid growth. Given the economic uncertainties during the pandemic, Cora went looking for a well-established lender with a strong track record to ensure they would have this liquidity now and in future years.
Gibraltar had maintained a relationship with Cora for several years and had also financed a separate portfolio company of one of Cora’s institutional equity investors. Gibraltar’s financial stability and reputation, as well as the open access to their senior management, reassured Cora that the asset-based lender would be the right partner for them as they grew.
Funding Solution: $5MM Credit Facility With Accordion Feature
Cora and Gibraltar agreed on a $5 million asset-based line of credit based on accounts receivable and inventory. The inventory borrowing base includes finished goods and in-transit inventory with no inventory appraisal required which reflects the creativity of Gibraltar’s credit team. An accordion feature allows the facility to be increased to $7 million as warranted.
“Gibraltar’s track record and stability makes us feel confident that we can look to them for the liquidity we need not only now, but in future years,” said David Lacy, CFO. “We’re excited about using these funds to continue our mission of empowering women with innovative products, health education and economic opportunities.”