OVERVIEW

Case Study

Netraco Group has refinanced its current financing facilities at ABN AMRO and at the same time acquired additional growth funding.

Lindenaar & Co acted as advisor for the Netraco Group, a group of fashion companies, to realise financing facilities for the company’s growth ambitions and seasonality needs. The group of fashion companies consists of the following brands / labels: Netraco, Goosecraft, Krakatau, Ibana, DNA-Amsterdam, SmashBox and NA-KD.

Following a competitive process, ABN AMRO, the company’s main bank, offered Netraco Group the best solution. ABN AMRO Commercial Finance facilitates the working capital needs by means of invoice factoring and asset based lending. ABN AMRO Bank provides the required facilities to finance the start of the season (e.g. start of production and goods during transportation). The new financing facilities have been specifically structured to suit the fashion company’s seasonality patterns and provides ample opportunities for growth.

Lindenaar & Co advised Netraco Group during the entire debt process, from the financial analysis and structuring, up to approaching the different financiers and negotiating terms and conditions.

What we have done

Financial model

Lindenaar & Co constructed an extensive financial model in order to translate the growth of the company in multiple scenarios in working capital-, investments-, and liquidity needs for the coming years.

Financing memorandum

Given the fact that his was a growth financing, it was key to provide the bank with an information memorandum with clearly presented core information about the financing needs. In addition to the extensive financial analysis, a lot of attention was paid to the different business models, the supply chain and the their impact on the financial need.

Financing structure

Based on of the wishes of the entrepreneur and the capabilities of the bank, a new financing structure was agreed, with expansion of the working capital financing by introduction of Commercial Finance and in addition a large tail funding.

Bank relationship

It was important to arrange the best terms and conditions during the negotiations, for this purpose, a competitive process was started. In the end, ABN AMRO improved its existing relationship with the customer by a proactive and creative attitude and appropriate financing structure.

Understanding the business

By her knowledge and experience in the retail sector, Lindenaar & Co was able to map the supple chain of Netraco, where the pre-selling to big fashion concerns and having own stores were important factors. This enabled the financiers to create a tailor-made financing solution.

Timing

Given the growth of the company and the upcoming Fall-Winter season, there was talk of a clear time frame. By a tightly-run process, was despite the summer period, the funding there with time to spare.

Netraco Group
Netraco Group

This successful group of fashion companies is mainly known for its strong signature in leather jackets (Goosecraft, DNA-Amsterdam and IBANA) and has a strong position in the private label market under the name Netraco. Recently, the group added a couple of upcoming brands, such as Krakatau and NA-KD.

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