ModelCo is a Sydney-based cosmetics company that specialises in the development, manufacture and supply of a range of cosmetic, skincare and tanning products.
Founded by former model agent Shelley Sullivan, ModelCo’s ‘Natural Skincare’ collection and other cosmetic products are sold via long-term supply agreements at major retail chains in Australia.
ModelCo has also been exporting since 2012, and has seen strong growth in the ‘beauty box’ concept in the United States, New Zealand, Europe, Asia and the Middle East.
“The concept, where customers receive products via a monthly subscription, has helped ModelCo differentiate its brand and products from established competitors very successfully,” says Founder and Managing Director, Shelley Sullivan.
More overseas demand
With ModelCo continuing to see increased demand from its US and UK distributors, this put increased pressure on its working capital.
Like many manufacturers, ModelCo has a relatively long working capital cycle, given the lead times involved in the pre-manufacturing stage of its products.
“We spend considerable time designing, testing and sampling our products, based on customer feedback,” says Sullivan.
So it can fulfil orders quickly, ModelCo also needs to have significant stock on hand, which results in a large amount of capital being tied up in inventory.
ModelCo approached its bank for some additional working capital, however it wasn’t able to approve the finance that ModelCo needed, but suggested it contact Efic to see if we had a solution.
How we helped
Our A$120,000 Export Contract Loan helped ModelCo to successfully supply the increased volumes needed by its key overseas distributors.
With its continued focus on product innovation and listening to its customers, ModelCo looks set to benefit from the strong worldwide demand for its products.