Annie’s Room Bridals is an institution in the Upper Eastern Tennesee area, so Lee Fish considered it an honor to take over the ownership of the boutique in 2021. Performing as an opera singer for many years, she formed a strong bond with the owners of the family-operated business that supplied all her stage gowns. So, when the original owner’s granddaughter decided to call it quits, the family chose Lee as their successor. Since then, Lee has successfully carried on the bridal boutique’s 43-year tradition of providing stunning wedding attire for customers in the area.
Most residents in this region consider Annie’s Room Bridals a mainstay business and a source of many good memories. This bridal boutique offers gowns from top designers. Annie’s Room offers a variety of price ranges to suit every bride’s budget — for example, informal bridal gowns without trains retail from $170 to $500. And formal gowns with trains range from $999 to $2,000.
Situation
Annie’s Room Bridal earns between $300,000 to $450,000 annually. However, the boutique requires substantial working capital to maintain fluid business operations. “We have nine months of being very, very busy, and then we go somewhere between three to four slow months [during summer]. And that time of year is tough.”
Before Lee found a solution, generating the cash flow to maintain the business during the slow periods was extremely difficult. In the off-season months, she needs the working capital to order the inventory for the busy season. Also, the cost of maintaining inventory during the offseason can eat into profits. Inventory-related expenses like insurance and depreciation can tie up working capital for payroll and growth, so, early in her ownership role, Lee sought a small business-friendly financial solution.
Solution
One day, while listening to a popular talk radio show, Lee discovered Zinch through the radio host’s commentary. She liked that the company focused on small businesses and their unique financing challenges.
“The [financing] model is what really got to me,” Lee commented. She likes that the boutique gets a lump sum through a merchant cash advance (MCA) in return for a percentage of future credit card/debit receipts until the business pays the total amount due. And the flexible payback plan helps us tremendously with our daily cash flow.” In addition, she found the application process quick and easy.
Lee had previously used other finance companies, but the daily withdrawals significantly handicapped her business. She finds that the Zinch MCA sales-based payback plan is much more compatible with the needs of seasonal small businesses like Annie’s Room.
Results
Since Zinch’s MCA allows Annie’s Room to make the appropriate moves in the off-season, the boutique is better prepared to pay back the MCA during the long season. Lee sums up her relationship with Zinch by saying, “Zinch’s merchant cash advances (MCAs) allowed Annie’s Room to have the maximum amount of cash when it counts instead of me having to worry every day about selling enough inventory to keep us afloat. Still, to this day, Zinch is a valuable partner for us. And I’d recommend Zinch to any business needing quick access to working capital. “
