“We knew that if we just kept working and kept the invoices coming in, we could keep growing. And that’s exactly what happened.”

If you have ever wandered the aisles at CVS or Walgreens and come across a line of carefree, colorful clothing, you may be looking at some of Island Planet’s designs. 

In 2003, tropical apparel company Island Planet was looking for a way to have a constant cash flow for suppliers while waiting for their own customers’ payment terms.  And, through conversations learned about invoice factoring as a way to create a financial cushion without incurring debt.

On contacting AR Funding to learn more about factoring, partners Bonnie Brown and Bill Logan were impressed with how straightforward the process was. They knew this would be a great direction for Island Planet and began factoring 100% of the company’s invoices. 

“AR Funding systems are so simple,” said Brown. “It was so easy to keep track of everything, including the purchases, the advances, and the collections. All we had to do was submit the customer invoice and the funding was automatically deposited in the company account the next morning.”

Financing 4X growth

Invoice factoring played an important role in helping Island Planet focus on growth.  

“Factoring allowed us to concentrate on developing sales knowing the advance for the invoices would be in our account the next day,” Brown explained. “With that safety net, our job was to keep the invoices coming in and that would give us the capacity to continue growing. And that’s exactly what happened. It was really good for our business.”

Brown also appreciated the organized system AR Funding uses to stay on top of invoicing and collections. “It’s system lined up perfectly with how our accounting works, keeping it even more disciplined.  That’s really important in order to grow.”

Over a 20-year period, Island Planet relocated to larger locations twice and was able to quadruple its revenues. 

A true service partner

Brown said that everyone at Island Planet benefited from the relationship with AR Funding and all the staff there.

“In addition to having that advance deposited daily, any time there was a question, the AR Funding response was immediate and helpful,” said Brown. “It’s easy for a small business owner to understand when the weight of waiting for a receivable is taken off your shoulders. That’s what AR Funding has done for us.”

The start of a new chapter

When the 20-year partnership between AR Funding and Island Planet finally ended, both sides saw the outcome as a cause for celebration. 

“Right from the beginning, the AR Funding representative explained that factoring is not something you do forever,” Brown explained. “They said that it is something that helps you get from one level to another.

“When Island Planet did reach that level, we were totally grateful to AR Funding for believing in a very small company and encouraging us the entire way. Thank you AR Funding!“