I recently attended the 2013 SwimShow in Miami Beach, a convention for swimwear, cover-ups, resort jewelry and overall resort and lifestyle necessities. I was pleased to see that the overall sentiment of the show was positive. Show traffic was robust and both our clients and other vendors we spoke with were experiencing increases in sales.
In attendance were also a large number of foreign manufacturers who were feeling just as upbeat as the U.S. retailers. The sentiment of foreign manufacturers is vital to the space as most resort wear is manufactured abroad.
Given that resort wear is a seasonal business, factoring is often a preferred method of financing for these companies as it can provide additional working capital necessary during key busy seasons.
During seasonal upswings, factors regularly supply seasonal over advances to help support inventory for seasonal business such as swimwear companies.