Eco-label Ecoalf secures €4 million financing from factoring specialist Eurofactor
Spanish sustainable fashion label Ecoalf has signed a factoring deal worth €4 million with Eurofactor. The credit line, derived by the transfer of the collection rights for the label's invoices to Eurofactor, will enable Ecoalf to finance its short-term working capital requirements.
Spanish consulting firm Abante has acted as adviser to Ecoalf in the operation, which will enable the label to “transfer to [Eurofactor] up to €12 million in invoice collection rights annually, with a financing limit set at €4 million. The threshold is liable to increase over time, as the level of [Ecoalf’s] growth prospects will improve,” the label stated in a press release.
“This is a strategic agreement designed to finance the rapid growth that Ecoalf is experiencing on a global scale on international markets,” said Javier Goyeneche, the fashion retailer's founder.
In the press release, Ecoalf underlined how Eurofactor, which is part of the Crédit Agricole group and is based in Paris, “has reaffirmed its commitment to sustainability through the operation.”
Ecoalf was founded in 2009. Its tagline, ‘Because there is no planet B’, emphasises the label's unique commitment to manufacturing apparel using recycled materials. Ecoalf relies strongly on new technology and R&D investment, and is a certified B corporation, a mark of its social and environmental engagement. Goyeneche was recently awarded a social innovation prize by the Schwab Foundation, a sister organisation of the World Economic Forum.
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