NEW YORK, United States — Even in the best of times, it’s tough for fashion start-ups to access the capital they need to sustain their growth and expansion. But today, it’s downright brutal.

The usual private investment sources like angel investors and early-stage venture capital, which were limited to begin with, have dried up. What’s more, fashion boutiques can be notoriously slow at paying their invoices and sometimes, they don’t pay at all, making cash flow management tricky and unpredictable.

In a sinking economy, this kind of behaviour will only get worse, as fashion boutiques hoard cash and in some cases, go out of business. So while we have seen independent fashion businesses flourish in recent years, today they have an even higher risk of failure due to their small scale and limited access to capital.

This is where factoring companies like Hilldun Corporation can help. I caught up with CEO Jeffrey Kapelman to get his take on the economy and what independent designers can do to survive the downturn.

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