Adeptus USA

Case Study

With C2FO’s Receivables Finance, Adeptus USA can sign deals with major retailers like Walmart—knowing they’ll have the capital to fund production.

Solid wood furniture at particle board prices sounds too good to be true, but it’s exactly what Adeptus USA has provided since 1976.

By combining the founder’s industrial engineering background with outsourced manufacturing in Brazil and a lean operational model, Adeptus pioneered the ready-to-assemble solid wood category.

Adeptus USA product showcase

In recent years the company has expanded to e-commerce, invested heavily in product innovation and technology, and caught the attention of retail giants.

But until recently, the company’s opportunities to grow have been far greater than its ability to supply.

The challenge

The value of solid wood over particle board at the same price point is obvious.

What hasn’t been as straightforward is equipping the factories in Brazil to produce furniture in the quantities demanded by national retailers.

Billy White, CEO of Adeptus, spent ten years solving the production challenges and immediately ran into his next problem—financing the massive purchase orders from national retailers like Walmart.

“In the past, we’d ship ten containers a month. That’s no big deal, we can fund that internally. But when you start selling to a national retailer and you’ve got sixty containers a month, that’s a different story.”

Billy White, CEO of Adeptus USA

Billy was at a crossroads. The production was in place and his son, Carr, was lining up deals with major retailers.

At the same time, he was planning to retire in a few years and hesitant to jeopardize his retirement funds to scale the business further.

While supporting Carr, who would eventually run the company, was incredibly important, Billy and his wife felt the risk to their future was just too high.

Billy needed another option, one that was flexible and cost-effective enough to work with the company’s lean operational model.

The solution

Billy was first introduced to C2FO when his customer Amazon announced it had partnered with the company to provide on-demand invoice payments to its vendors.

Soon after its introduction, the C2FO platform quickly became an easy way for Adeptus to improve cash flow whenever it needed to bridge a cash gap or fund inventory.

“I came across C2FO early pay system primarily because of my business with Amazon. For us, it’s been an easy, no-nonsense way to bring in capital.”

Unfortunately, Amazon was Adeptus’ only customer offering early payments through the C2FO platform.

This severely limited the amount of working capital they could access through early payments.

As he evaluated other options, Billy remembered a discussion with his C2FO account manager, Jeff Smithmier, about some new working capital solutions—and decided to give him a call.

“Jeff and the C2FO team presented me with a couple of very creative ideas where I could grow the business with no further capital requirement on my part.”

During the call, Jeff introduced him to Receivables Finance, a solution that turns invoices from customers outside of C2FO’s network into a revolving line of credit.

It’s a line of credit built with growth in mind—availability is based on outstanding invoices, meaning that access to capital grows as fast as the business.

The solution was a perfect match for the company’s ambitious plans.

Results

Receivables Finance gives Billy the confidence to sign deals with the largest retailers in the US without having to put his retirement funds at risk.

Billy White, CEO of Adeptus USA takes a phone call

“We’re now able to sell to national accounts and we’ve tripled our business in the last five or six months.”

Beyond its expansion into national retailers, Adeptus is spending more time innovating.

The company is developing a web platform that allows consumers to customize furniture to their specifications and have the item shipped to them directly from the factory.

Adeptus is also preparing to launch a “quick connect” system that enables the consumer to assemble all its furniture in 17 minutes or less (look out, IKEA).

You can learn more about Adeptus USA here: https://adeptus.com/

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