How Revenue-Based Funding helped expand Frugality Inc.’s product line and increase their revenue

By 2029 the global eCommerce industry is expected to hit over US$6,4 bn, growing at an annual rate of 9.49% (YoY). So it’s safe to say - if eCom businesses aren’t growing, they risk falling behind. By partnering with SMBs like Frugality, Stenn ignites business growth - using alternative financing solutions as the catalyst.

Frugality is an eCommerce business that delivers a range of affordable products such as sportswear, electronics, books, and hobby items nationwide. Their mission is clear: to make modern essentials accessible to everyone by expanding its product offering to meet a growing demand. With this in mind, they can not only ensure they survive in the eCommerce marketplace but outpace the competition and rise to the very top of the industry. However, achieving this requires more than just a vision - it requires working capital. 

The challenge of scaling up while meeting demand

Faced with a critical challenge, Frugality needed financing to expand their product range, tap into new emerging markets, and boost profits, all while meeting existing customer demands. This financial constraint left them with a big challenge, torn between scaling up and fulfilling current orders. As Wayne English, President of Frugality, puts it:

“We wanted to take advantage of inventory opportunities to expand our product selection, but a lack of financing just didn’t give us the means to do so.”

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Why Stenn? 

Frugality turned to Stenn because they needed to access finance quickly and without fuss. They were able to apply, receive approval and have the funds deposited in their bank account very quickly. With 24/7 support, the entire process—from application to final signatures—was straightforward and transparent.

“The team at Stenn was incredibly helpful and supported us at every step of the way.”
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Sustained growth

With financing from Stenn, Frugality have been able to to expand its product range and enter emerging markets. And in terms of keeping up with customer demands, the new influx of cash flow gave them the power to secure 45-90 days’ worth of inventory, ensuring they could keep up with customer demands, broaden product selection and position themselves for sustained growth. The flexibility and speed of revenue-based financing has helped pave the way for Frugality’s long-term success, driving revenue growth and powering their expansion.

Revenue-based financing empowered Frugality to:

• Increased inventory management by 45-90 days
• Secured new product ranges
• Increase revenue and profitability within the wholesale business.

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"Finally. A place that understands eCommerce and the challenges of obtaining financing for eCommerce businesses."

— Wayne English, President, Frugality, Inc.
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A pathway to long-term success

Frugality, Inc.'s story is just one example of the power of revenue-based funding in regard to driving eCommerce success. By partnering with Stenn, Frugality were able to overcome financial constraints, expand their product offerings, and boost revenue—all while maintaining the agility needed to thrive in a competitive market. As Frugality continues to grow, their experience with Stenn is a powerful example of how the right financial partner can make all the difference in achieving long-term success.

Get in touch with us today and discover how revenue-based financing can keep your business growing.

Click here.

Source:
Statista

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