Louise Banham finds out what finance is available to invest in your business with the help of Got Captial managing director, Alex Afek
What services do you offer wholesalers?
Got Capital offers royalty investments. The royalty is an agreed percentage of the business’s gross sales. In exchange for Got Capital’s investment, the specific royalty percentage is directed out of the business revenue back to Got Capital until the agreed payback is fulfilled.
Unlike banks or other finance companies, we require no personal guarantee or collateral – the funding is sales-based and approvals are based on an overall business performance review, rather than a credit score or assurance assets.
What challenges are wholesalers facing?
Financial pressure is one of the strongest reasons that wholesalers aren’t able to expand and thrive. Already dealing with thin margins, they’re facing taxes and a swift changing global economy, as well as rising costs.
What is your greatest achievement in the past year?
One memory that really stuck with me was when we worked with a new entrepreneur who got off on the wrong foot. He had only just started his business and had a ‘below average’ credit score.
After speaking with him and looking at his sales to date, we saw an opportunity to invest in a passionate business owner and we approved a £10,000 investment that was funded on the same day.
His sales grew from £15,000 a month to close to £180,000, and he now has a credit line of £150,000 with us.
What would you like to see happen in wholesaling in the next 12 months?
As a consumer myself, I would like to see the cost of raw material and supplies decrease so wholesalers are able to have stronger margins.
Hopefully, as a result, they will use the extra revenue to become more innovative to better serve their customers.
Are you planning any activity wholesalers should be aware of?
Got Capital would like to build a network or platform of all our amazing clientele so that each business owner has the ability to trade with each other and discover new amazing products and services.
I would like to believe this would increase awareness for local businesses and the community in general.
What advice would you give wholesalers looking to grow their businesses?
Invest in social media. I understand it can look intimidating and overwhelming, but it was designed for every single person to use. If you cannot hire an intern or social media manager to showcase your brand, there is tons of free information online with just a click of a button. Look out for our upcoming blogs that will show easy steps on how to grow your business using social media.
You can reach so many new customers, and it adds a personal touch to your existing customers as well.
What would you say to wholesalers who worry about embarking on investment deals?
New moves can always be a little worrying. Got Capital was built on the fact that we provide genuine care and support to each of our clients, with custom-built offers that put you in the best position to succeed.
We believe a long-term personal relationship is a key factor in any business’s success. Driven by a genuine commitment to each of our clients, we match every customer with an experienced account manager.