Financing Growth: How LOVECO Used Flexible Capital to Act on Market Opportunities

Growth often requires courage – and frequently, capital. When businesses want to expand their product lines, test innovative materials, or respond to emerging trends, they often have to invest long before revenue comes in. For companies selling physical products, this creates a common challenge: bridging the gap between idea and income.

A Berlin-based fashion company shows how this can be managed effectively in practice.

Real-World Insight: The Case of LOVECO

LOVECO is a sustainable fashion brand based in Berlin. Since 2014, the company has been offering fair fashion through its online shop and several physical stores – working exclusively with brands that meet strict ecological and social standards.

In 2023, the LOVECO team saw an opportunity to expand their product range with items made from recycled wool – a material that aligned perfectly with their values and was increasingly in demand. However, as with many product-related decisions, it required upfront payment long before any sales would be made.

“In the fashion industry, we often have to commit to purchasing stock months before we generate revenue from it. That regularly increases our short-term capital needs", says co-founder and CEO Moritz Marker.

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From Financing Need to Strategic Action

In cases like this, many entrepreneurs turn to their house bank first. Banks are often reliable partners, offering established relationships and individual advice. However, when it comes to short-term financing needs – such as pre-financing inventory or seizing time-sensitive supplier deals – traditional processes can be too slow or inflexible.

To stay agile, LOVECO decided to complement its existing financing setup with a digital solution. The goal: to move quickly and secure the new collection in time.

Digital Financing as a Strategic Tool

The process was entirely digital – from application and verification to payout. Within just a few days, the funds were available. This allowed LOVECO not only to place the order on time but also to benefit from early payment discounts.

The recycled wool products turned out to be a commercial success and quickly became one of the store’s best-selling categories. Looking back, the ability to act quickly made a real difference.

What Entrepreneurs Can Take Away

LOVECO’s story illustrates a common issue many small and medium-sized businesses face:

• Investments are often needed before revenue follows.
• Opportunities in the market emerge suddenly and require fast decisions.
• Lack of liquidity can slow down or block growth initiatives.

In such cases, it may be helpful to evaluate flexible financing options that supplement existing banking relationships – especially when speed is essential.

Questions Entrepreneurs Can Ask Themselves

• Do I regularly face gaps between investment and revenue?
• How quickly can I respond to unexpected capital needs today?
• Is my current financing setup flexible enough?
• Are there digital solutions I could integrate to increase agility?

Conclusion

The ability to act at the right time is often what distinguishes strong businesses. LOVECO’s experience shows how flexible financing can support important business decisions and enable companies to seize opportunities rather than postpone or miss them.

Taking time to assess your financing options – including digital ones – can help increase your company’s agility and create room for continued growth.