Do you offer credit?

Yes, Hula Global provides credit but only to its existing business customers with at least 2 years of business history and subjected to other credit conditions.

Hula Global’s credit plan is designed to assist brands in the management of their cash flow, while the brand continues to partner with Hula Global as their supplier and service provider. It is not uncommon for developing businesses within the apparel and retail space to have unpredictable revenue, uneven production schedules, and inconsistent turnover.

Hula Global’s credit offers the opportunity to such brands to place and fulfill orders without the burden of an upfront payment. This greatly improves their operational flexibility.

Though almost all representations of the access global facility will almost always become something that will be offered to clients. A necessary condition for any brand to obtain credit is that the brand must be active with a business relationship for at least a minimum of two-year duration.

This policy provides a window for Hula Global to track a client's order reliability, payment history, and overall business robustness. An enduring business relationship will also aid Hula Global in the Creditworthiness analysis of the business.

With the status of the relationship after two-year being obtained, Hula Global will primarily focus on monitoring four important criteria, these being the overall order placement, the payment punctuality, the presence of communication, and the professionalism of the brand. We partner with third-party credit rating agencies to evaluate the creditworthiness of each brand. All these factors enable Hula Global to ensure that the operational window is stable. For this reason, these brands will be apt to receive credit.

On the contrary, brands that are operationally unstable, whose payment history shows a lack of operational cadence, and whose brand professionalism is superficial, will not receive credit. Besides the length of the relationship, the other main condition for eligibility of credit is approval from the relevant credit agencies and the ECGC (Export Credit Guarantee Corporation of India).

ECGC is an India government exporter credit insurance company, which defends exporters against buyer non-payment risk for any reason, including buyer financial issues, insolvency, or other issues. Therefore, from the perspective of Hula Global, the client who owes the money will remain protected.

Having the ECGC in the step of the process for credit approval is an additional benefit of Hula Global. Since Hula Global works mainly with international brands, the government-backed insurance on the financial support is an additional plus to mitigate risk on international transactions.

It adds reassurance to Hula Global and confidence that the other party is a real business with sound financials, who will pay.

Every time Hula Global provides credit to a company, there is a partnership with local and international credit agencies to analyze that company's finances. It goes to the extent of analyzing company financial statements, credit history, the business model, revenue consistency, and market reputation.

The intention, contrary to the popular view, is not to restrict credit issuance but to lend responsibly.

When a specific client receives a credit line approval, they are informed of the payment terms associated with credit extensions. These terms are determined by the company’s size, the volume of orders they’ve placed, and the payments they’ve made, as well as the financial liability they pose.

Some customers may be given a credit limit with less liability, while others may be given more liberal payment terms. These limits and guidelines are discussed up front and agreed upon before any new production orders are placed under the line of credit.

Also note, credit terms are not intended to replace the payment terms given to new businesses, small businesses, or any company with little or no operational history.

For newer businesses, emerging brands, or any company that may not have an extensive operational history, Hula Global typically requires full payment up front (before dispatch) to minimize the financial risk to the company. As these businesses grow and establish a history with Hula Global, they may be given credit.

Extending credit is also a significant indicator of the type of relationship Hula Global is establishing with its customers. Hula Global isn't just a manufacturer; offering financial assistance to their customers to help build their businesses reflects that they see their customers as strategic business partners, which Hula Global is committed to supporting.

Hula Global is also very disciplined and transparent when it comes to its financial and credit policies. Credit terms are misused and may result in restricted credits and/or increased payment terms in the future.

For those brands that qualify, the credit offered can greatly increase operational efficiency. With credit, brands can focus their available capital on marketing, inventory, and pre-production expansion, all while meeting production obligations. This is very applicable to cash-flow-driven models, especially D2C brands, retailers, and e-commerce businesses.

Hula Global does provide credit, but it is limited to brands that have been working with Hula Global for a minimum of one year and have been approved by a recognized credit agency and ECGC.

This policy is designed to guarantee adequate risk control, responsible credit granting, and sustainable business relations. For clients who are interested in credit facilities, eligibility requirements can be discussed with Hula Global’s finance/account management for further assistance.

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