The Fashion District, in numbers that matter to a small maker
The Los Angeles Fashion District, previously known as the Garment District, is a business improvement district in downtown Los Angeles. It caters to wholesale selling and has more than 4,000 overwhelmingly independently owned and operated retail and wholesale businesses selling apparel, footwear, accessories and fabrics. That tells you what kind of company usually works here: small, family-run, buying from one another and selling to boutiques, brands and stores.
It also tells you why the payment chain matters. When thousands of independent businesses trade with each other, each one's cash depends on the one before it paying on time.
One season, followed through
- Design and sampling. Patterns, samples and fit sessions cost money and produce no sales.
- Fabric and trim. Mills and wholesalers often want payment before or on delivery.
- Cutting and sewing. Labor is paid weekly, by piece or by hour.
- Finishing and shipping. Labels, packing and freight are paid before the order leaves.
- Wholesale invoice. A store or brand pays on its own terms, often weeks later.
By the time the cash arrives, the next season's samples are already being made.
Where wholesale terms bite
For illustration only: a small label receives a $90,000 order from a retailer. Fabric and trims cost $30,000 up front, sewing labor runs $25,000 over three weeks, and shipping adds $3,000. The retailer pays on net-45. The maker has spent $58,000 before it sees a payment, while also paying the sample room and rent.
| Pressure point | What it forces |
|---|---|
| Minimum fabric orders | Buy more than one order needs, or lose the price |
| Seasonal spikes | Hire sewers fast, then cut back |
| Late-paying accounts | Float the next order from savings |
| Rush reorders | Pay premiums for speed |
Small habits that keep a garment business liquid
Makers who stay ahead of the squeeze tend to do a few simple things. They quote a deposit on every wholesale order, even a small one, so a share of fabric cost is covered before cutting begins. They keep their most reliable contractors on a steady flow of work instead of letting them drift to other shops in slow weeks. They also check which of their accounts pay slowest and price or schedule those orders differently. None of that removes the need for working capital in a heavy month, but it shrinks the amount you need and makes the request easier to explain.
Where funding fits, and what we need
Garment businesses often use working capital to buy fabric ahead of a season, to staff a rush order, or to bridge receivables. Machines such as industrial sewing, cutting and pressing equipment may suit equipment financing. Recurring gaps can sometimes be handled with a line of credit.
We fund $25,000 to $5,000,000, with funding in as little as 24 hours after a complete file. FICO 500+ is considered, about three months of business bank statements are requested, and tax returns are not required. The application takes about five minutes with a soft credit pull. Sole proprietors, such as independent designers, can apply. Apply here.