Curve Commercial’s Innovative Inventory Funding Enhances Retail-Vendor Relationships
Curve founder and CEO Daryl Hudson recently spoke with Inc. Magazine about the funding revolution he has started in the supply chain industry. Inc. Magazine listed Curve Commercial as #232 in Inc.’s 5000 in 2015. The interview makes the comparison between Curve’s role in the commercial sector and PayPal’s role in personal consumer transactions with a particular interest in how Curve is reinvigorating a flawed system of retail-vendor relationships.
Curve’s innovative funding strategy aims to bridge the gap between small (and not-so-small businesses) and their suppliers. Hudson told Inc., “Today, my market is a client who does not have the liquidity to fulfill the orders but has a bank in place to mitigate my risk. The established company needing inventory has the ability to pay Curve from its current and demonstrated cash flow cycle or its current lending arrangements, or it refers its customers to Curve to pay directly on sold and invoiced orders. I offer a package where we create a line of credit for 5 to 8 percent of revenue that companies can use to purchase products through us. Much like PayPal, which pays the supplier and debits the buyer, I position myself between the client and the vendor. I purchase the goods on the client’s behalf creating a receivable on my books.”
Curve works with companies earning anywhere from $10-500 million in revenue in industries as varied as mobile phones and specialty apparel. They invest in potential so that debt or lack of credit do not hinder progress in order to “help a company’s revenue go up in a curve.”