Gelmart Improves its Cash Conversion Cycle Using Quartix's SCF

With over 70 years of experience as a leading Intimates manufacturer supplier, Gelmart has established itself as a trusted partner to the world's largest retailers. The company has a proven track record in building and designing private label proprietary and licensed brands in the Intimates, lounge, and swim categories.

Prior to implementing the Supply Chain Finance (SCF) program in collaboration with Quartix, Gelmart faced significant challenges in cash flow management due to supply chain delays. Its key challenge was having to pay vendors for goods in transit before being able to convert it into inventory and then into receivables (at which point it could utilize traditional financing options such as AR-factoring). This created cash flow constraints, hindered effective financial management and strained relationships with long-term vendors. 

Recognizing the need for a solution, Gelmart partnered with Quartix to address these challenges, with three key objectives in mind:

1. Optimizing its cash flow cycle.
2. Allowing for more flexibility and improved management of financial resources
3. Maintaining strong relationships with its suppliers by providing them with timely financing options to support their operations. 1.

SCF proved to be instrumental for Gelmart. By offering optional, flexible, third-party-funded early payments to its high-spend vendors, Gelmart enabled vendors to receive payments whenever they wanted (for a fee paid by the vendor), while Gelmart retained its essential cash for longer. This struck a balance between meeting Gelmart’s own financial needs and those of its suppliers.