The Hedaya Capital Group recently provided a $2 million factoring facility to a New Jersey-based, minority-owned design and manufacturing firm in the apparel and merchandising industry, supporting continued growth through a critical lender transition. With a proven track record of working with discount retailers, the five-year-old Company sells denim apparel to major department stores across the United States, including Boscov’s, Burlington, Ross, and Bealls.  

Led by an experienced owner who has successfully built and scaled multiple apparel businesses, the Company has grown annual revenue from several hundred thousand dollars to several million and is projecting $8 million in sales for 2026 with a small but experienced staff. Like many apparel manufacturers, the Company faces significant upfront inventory, manufacturing, and shipping costs, coupled with extended customer payment terms. Factoring had historically been an essential working capital solution.

However, the Company’s previous lender was sunsetting their involvement in the sector and reached out to Hedaya Capital to assist in transitioning them to a new lending partner as seamlessly as possible. The Hedaya team conducted due diligence quickly and structured a $2 million factoring facility to enable the Company to maintain their current level of growth.

“This Company really resonated with the team and with the Hedaya family history of being both business owners and lenders,” said David Huber, Vice President, Portfolio and Operations Manager at Hedaya Capital. “The transition was seamless and we are all looking forward to seeing how they continue to evolve.”

The new facility enables the Company to buy more material, design and manufacture more apparel, cover shipment costs and meet payroll, positioning it to sustain its growth trajectory and strengthen retail partnerships.