NYC Fashion Production Fund
The NYC Fashion Production Fund (NYCFPF) 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 NYCFPF, administered by Capital Business Credit LLC (CBC), will provide NYC-based emerging designers with purchase order financing at below-market rates and with more flexible terms than those of traditional lenders.
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.
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 a 9.5% per annum interest (0.79% per month) on the total cost of production.
- Require monthly payment of a 0.33% servicing and monitoring fee.
Loan Eligibility Criteria
To be eligible, designers will
- Be based in 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 three seasons, subject to exception.
Please note that eligibility does not guarantee acceptance into the NYCFPF.
For more information on how to apply, visit http://nycfashionproductionfund.com/.