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June 21, 2024
10 min read

How Suzie Kondi cut its cost of capital by 70% after switching to Highbeam

Suzie Kondi’s eponymous NYC-based label is known for women’s tracksuits and loungewear that’s perfect for working from home. As they’ve experienced near-exponential growth since 2020, the team switched to Highbeam to reduce capital costs and optimize cash management.

"Transparency with your brand's cash flow doesn't really exist in banking. It's refreshing how clear and easy Highbeam makes our credit and cash flow to understand."
Lauren Goldberg, CEO at Suzie Kondi

The Problem

Cash flow management is tough for every brand due to lopsided sales calendars that force merchants to pour spare cash into manufacturing, inventory, and marketing far ahead of sales. 

According to Lauren Goldberg, CEO of Suzie Kondi, early complications with vendors led to difficult cash management decisions. In the absence of a dedicated credit partner at the time, the team at Suzie Kondi was forced to rely on expensive cash advance providers.

While they explored inventory and receivables financing, those loans became uneconomical as rapid payback periods eroded their cash flow. As a result, this created a vicious cycle of relying on increasing cash advances which in turn reduced cash flow available to grow the business.

It was clear that Suzie Kondi needed a new banking partner that could not only improve cash management, but also offered integrated and flexible lines of credit to reduce their capital costs.

"Capital sources are often Band-Aids that don’t provide real solutions. It’s tempting to go with the easiest cash source, and there are lots of people offering capital left and right. But they may not solve your long-term problems."

The Solution

Fortunately, Lauren found Highbeam, a brand-friendly banking platform that combined cash management with a revolving line of credit – exactly what Suzie Kondi needed. This all-inclusive offering ended up transforming Suzie Kondi’s credit experience. For Lauren, the value is twofold: 

  1. Suzie Kondi received a revolving line of credit that grows with the brand over time
  2. They get access to Highbeam’s deep financial expertise and cash flow solutions 

By utilizing Highbeam’s cash management and credit tools, the Suzie Kondi team has been able to establish a new level of understanding and discipline of the brand’s finances.

Lauren emphasizes how easy it is to navigate, utilize, and understand the Highbeam interface — no financial background necessary. And when it comes to the line of credit, she appreciates how the “agreements and rates are refreshingly straightforward, something that is unfortunately rare in this industry.”

"When you find a partner who actually cares about growing your business and growing alongside you, the efficiency gain and confidence boost are huge. It makes investing in that relationship so appealing."

The Results

Since partnering with Suzie Kondi, Highbeam’s cash management and credit platform has become integral to the brand’s growth and operations as they continue to scale up.

They can finally let the business (not its cash) run the show. Most impressively, by utilizing Highbeam’s line of credit combined with the cash forecasting, the brand estimates it has cut its capital costs by 70% compared to using a cash advance provider.

Ultimately, Highbeam’s flat APR and flexible terms were far better for Suzie Kondi’s cash flow than a merchant cash advance. 

No longer strapped for cash means Suzie Kondi can pursue opportunities unencumbered and invest in the long-term. “Highbeam’s cash management tools and line of credit are key to all of that,” says Lauren.

"Without Highbeam, we would still be struggling to scale and achieve the growth we want. Now, we understand our cash needs and how to finance our business better."

The Future

The Suzie Kondi team is excited to take advantage of Highbeam features and perks they have yet to explore, such as saving on marketing spend with Highbeam’s spend cards. Internally, the brand long struggled to expand their team because hiring and payroll are major expenses. 

With Highbeam behind them, they’re financially set to hire more team members and build a more efficient business that’s positioned for long-term sustainability.

"Moving forward with Highbeam has, in a way, allowed us to see our entire business for the first time."

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