CHALLENGE
Local music retailer Ponce de Leon near Atlanta was struggling to keep right mix of inventory in stock
SOLUTION
Using Fundbox, they could keep a wider variety in stock or place special orders
RESULTS
They’ve seen increased sales and can take advantage of vendor early payment discounts
Musical instruments retailer Ponce de Leon had a healthy business working with local musicians and school bands near their Atlanta, Georgia storefront. But they sometimes struggled to place large orders for the school districts or keep rare or specialized instruments in stock for shoppers.
That changed then they were approved for Fundbox and could use their line of credit to pay o vendors more quickly — also benefiting from early payment discounts — and invest in a wider variety of instruments to keep in stock for musicians looking for specialized equipment. The result was beer rates from vendors and more sales from musicians seeking specialized instruments.
Challenge
Ponce de Leon Music is a family-owned retail shop specializing in musical instrument sales, rentals, and lessons in the Atlanta metro area. A large percentage of their revenue comes from rentals and sales to students in local school bands.
We work closely with the school band directors. If their band program is successful then they’ll continue coming back. We do anything we can to help them, and give their students great quality instruments.
Kathy Hines, President, Ponce de Leon
Ponce de Leon had been in business for over 50 years yet, like many businesses of their size, they struggled investing in the quality and selection of inventory they need to serve their diverse clientele. “We have to buy the inventory ahead of time but we don’t always get the revenue before they have to pay for them. This is the challenge of carrying the variety and quality of instruments we need to carry to meet as many people’s needs as possible. And we’re competing with online retailers,” said Hines.
To give her customers more flexibility, Hines began ordering financing from Synchrony to her customers so they could pay over time for instruments. “With Synchrony, consumers are able to nance instruments. We get the money sooner. It works well.” While in the Synchrony Business Center, she encountered Fundbox.
Solution
Hines was actively looking for a line of credit that Ponce de Leon could use to help pay for inventory. She first tried her local bank. “With the bank I’d have to schedule an appointment, they’d have to do a full business investigation. They want to see two years of financials, tax returns. This wouldn’t have been an issue but it was just the time.”
After searching, she came across Fundbox. “The application for Fundbox was quick and easy. I just answered a few questions and that was it. It took 5-10 minutes tops,” she said.
After getting approved by Fundbox, she began drawing against the line of credit for a variety of reasons, often to invest in inventory. “In some instances have used Fundbox to make a purchase so I can turn back around and sell it. I’m able to get a discount from the supplier if I pay more quickly. I use Fundbox to pay the vendor right away and get the discount,” said Hines.
Results
Hines explains that using Fundbox has resulted in improvements for her business in a few ways. First, she can pay for the inventory right away, and gets the early payment discount from vendors. Second, she can carry a larger selection of inventory she otherwise couldn’t afford.
I have used Fundbox to grow. I’m able to accomodate customers looking for something at the higher end and keep it in stock.
Kathy Hines, President, Ponce de Leon
With so many brands and types of instruments, keeping a wide selection on hand is tricky. “Recently a customer came in and asked about an unusual brand of trumpet and we used Fundbox to place the order.
“The customer ended up buying it,” she said. More than anything, Fundbox gives her confidence that she can run her business the way she wants, serving all kinds of customers. “The real difference is peace of mind. If something comes up, Fundbox is available,” she said.