Wet Shave Club doubles membership and triples sales with a Kabbage loan for equipment, inventory and new website
Shortly after starting Wet Shave Club – a monthly membership service that delivers shaving soaps, double edge razor blades and other shaving goods – Kevin Pereira found himself with a good problem to have. His company was growing too quickly.
Qualify for a line up to $250,000
"We were in a situation where we couldn't keep up with the membership requests we had," Kevin said. "We were getting more and more members, but we didn't have the inventory to fill all of our requests. We needed working capital from somewhere."
Even though he’d been a loyal customer of his bank for more than 10 years – starting multiple businesses during that time – he was never able to get a small business loan from them.
"They basically told me that banks aren't giving money to anyone right now," he said. "I looked at other lenders, but our business was too new to meet the requirements, even though we had $20,000 a month in revenue."
"The ease of the application process was astounding," Kevin said. "I was able to link all of my bank information and avoid the hassle of tracking down financial statements and scanning in documents."
To serve the subscription customers that represent 90% of its revenue, Wet Shave Club purchases inventory two to three months before they receive orders, so it's common for them to run into cash flow deficits.
"Kabbage reviewed our accounts and were able to look past how new we were to see our potential and how we were growing. They gave us a business loan right away."
When his business was approved for a $19,000 line of credit, Kevin put his working capital toward warehouse equipment, negotiating with inventory suppliers and rebranding his website. "We were careful only to use our line of credit toward expenses that would increase our conversion rates, help us grow and pay back our business loan."
"I love that I can access the exact amount of capital I need. I don't have to take out a huge, lump sum," Kevin said. "The line of credit is really personalized for my business. As we grow, our line of credit grows."
Unlike traditional lenders, we approve small business loans by looking at real-life data, not just a credit score. Link the services you use to run your business, and we'll automatically review your business health. Your funds will be in your account in anywhere from a few minutes to fewer than three days. No paperwork, faxing or waiting in line.
You pay nothing to establish your line of credit, and you're not obligated to take an online loan when you're approved. Pay fees only on the working capital you take.
Draw against your credit line as often as once a day and pay only for what you take. With credit lines up to $250,000, you can dip into your piggy bank anytime.
Kabbage provides you with ongoing access to your funds online and on the go through our mobile app, so you're always ready to take advantage of the next opportunity.
Kabbage is TRUSTe certified, and we have and A+ rating with the Better Business Bureau. We take your security very seriously and follow all regulatory practices to maintain the integrity of your information. Regardless of whether you're approved or take a business loan, you can apply with confidence that your information is safe.