NYC Fashion Production Fund

Posted by on Apr 18, 2014 in Fashion Competitions | No Comments

NYC Fashion Fund

 

FASHION FUNDING:

The NYC Fashion Production Fund (NYCFPF or the Fund) was organized to support emerging designers based and manufacturing in New York City with financing to ensure that the City remains the premier destination for fashion design talent.

The NYC Fashion Production Fund is one of a suite of city initiatives to maintain and enhance New York City’s position as the global leader in fashion. To learn more about NYCEDC’s Fashion Initiatives visit www.nycedc.com/fashion

FUNDS:

The NYCFPF will provide NYC based emerging designers with purchase order financing at below-market rates and with more flexible terms than those of traditional lenders and factoring companies.

Loan Guidelines

The NYC Fashion Production Fund will:

  • Offer loans and advances against approved customer purchase orders
  • Offer loans (ranging from $50,000 – $300,000) to cover costs of raw materials and production
  • Offer loans for time periods between 30-120 days, depending on individual designers’ production cycles
  • Require the loans to be repaid upon shipment of the goods to the customer and assignment of the receivables to the designer’s lender or factor
  • Require payment of 9.5% per annum interest (0.79% per month)
  • Require monthly payment of a 0.33% servicing and monitoring fee

Acceptance into the Fund affords designers many benefits including access to a loan that has a simple and straightforward fee structure, ability to work with existing and additional lenders and/or factors, and access to mentoring, technical advisors and networking opportunities with industry experts.

CONDITIONS APPLY: For full information please visit NYC Fashion Fund website.

Eligibility

  • Be based and doing business in New York City
  • Manufacture goods in New York City
  • Provide detailed documentation of all approved customer and vendor purchase orders
  • Demonstrate a source of repayment to the NYCFPF upon shipment of finished inventory to the customer
  • Have manufactured and sold goods for a minimum of 3 seasons, subject to exception

Please note that eligibility does not guarantee acceptance into the NYCFPF.

APPLICANT:

Interested designers are asked to complete a questionnaire to determine if their business is ready for financing from the NYCFPF. Within 3-5 business days of submitting a completed questionnaire, eligible designers will receive an application from the NYCFPF or notification of ineligibility.

Along with a completed application, each eligible applicant must include:

  • Copies of all purchase orders being submitted for funding (on customer letterhead)
  • P & L statement covering the last 12 months
  • Tax returns from the last 2 years
  • Last 2 years’ trailing sales by customer
  • Letter of support from fashion industry contact(s) with whom the applicant has a significant professional relationship
  • A $250 application processing and due diligence fee payable by check to “NYC Fashion Production Fund LLC”

Timeline

Applicants will be notified:

  • Within 5-7 working days of receipt of the $250 application fee and completed application regarding additional due diligence requirements
  • Within 30 days of due diligence completion and funding decision

 

Written by Modeconnect

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