Pedaling to Success: Bicycle Manufacturers Switch Gears to Trade Credit
The bicycle manufacturing market in the U.S. is worth over $1 billion and is dominated by a small number of well-capitalized manufacturers. These companies have sufficient available cash flow to manufacture a set number of bicycles to place into retailers’ shops without asking for immediate payment. For retailers, this is a helpful arrangement as they welcome the chance to display and sell the bikes before having to pay the manufacturer.
However, specialist cycle manufacturers face a real challenge to achieving an in-store presence and growing sales because they can’t manufacture enough bikes to ship to retailers for display before payment.
The challenge: Smaller cycle brands need more access to capital to grow and compete against larger manufacturers.
The solution: Leveraging TreviPay’s trade credit program to allow smaller brands to be more competitive.
Read the full case study to learn how two different cycle companies successfully deployed our solution granting
an average credit line of $32,000 to each of their retailers and seeing transaction growth of 8% in their first year.