What is the amount of credit you provide to eligible brands?

Hula Global has taken a step towards fostering long-term, sustainable relationships with brands by offering structured and performance-based credit facilities. The amount of credit extended is not uniform or arbitrary, but instead, is based on the brand’s historical buying patterns, payment consistency, business reliability, partnership tenure with Hula Global, and overall stability.

While traditional financial institutions set credit limits on a one-size-fits-all basis, Hula Global employs a relationship-driven model that encourages credit based on a brand’s consistency, trust, growth, and overall performance enhancement.

This model ensures credit is extended in a responsible manner to deserving brands that have a track record of a strong commitment to Hula Global and credible activities.

Credit Based on Purchase History

A brand’s credit eligibility is primarily based on the total value of purchases made with Hula Global in the previous year. Thus, a brand that has had more transactions with Hula Global is likely to receive a higher credit limit.

This model is advantageous for brands that have established ongoing collaborations with Hula Global, for those that have consistently placed orders, and those that have maintained an uninterrupted flow of business. It also motivates brands to gradually scale their business, keeping an intact and healthy partnership with their manufacturer.

Credit Structure Based on Duration of Relationship

Hula Global implements a tiered credit structure, depending on the duration of the partnership with the brand:

1. Brands with 2 Year of Partnership

Once a brand reaches its second anniversary of engaging in business with Hula Global, it qualifies for a credit of up to 50% of its total purchases from the last 2 years.

For instance, should a brand have purchased products from Hula Global worth $100,000 in the previous year, it qualifies to receive credit up to $50,000. This is a revolving line of credit, which means for every purchase order, a max of $50k can be extended as a line of credit, provided all the other credit conditions are met.

This policy enables the brand to make additional orders without having to pay the entire amount up front, thus giving them the freedom to manage their cash flow and operations.

Such credit is aimed at brands which, in Hula Global’s view, are still in the early to mid-growth phases, even though they have shown sufficient reliability from consistent ordering and on-time payments during the first year.

2. Companies with 2+ Years of Business Partnership

A significant increase in credit limit applies to brands that have had partnerships with Hula Global for over two years. These brands can qualify for credit of up to 75% of the previous year’s purchase value.

Continuing with the same example, a brand could qualify for credit up to 75% if its total purchases in the last year amounted to $100,000. A more significant credit percentage, more than trust, means a stronger alignment in business and a deepening partnership with Hula Global and the brand.

This tier is especially advantageous for long-standing brands that make sizable, consistent orders and consider Hula Global as a primary manufacturing or sourcing collaborator.

The credit system is based on adequate risk allocation, fairness, and most importantly, transparency. Hula Global maintains a robust level of risk while crediting its partners, based on their actual purchases instead of projected sales or market assumptions.

We make certain that businesses get rewarded for their loyalty rather than short-term partnerships or one-off transactions.

Hula Global considers the 50% and 75% thresholds to be a starting point, and we remain open to other contributing aspects that impact the final credit balance, including:

For instance, brands with solid financials and long-term partnerships may obtain more flexible credit arrangements, while brands with erratic order placements may be assigned more restrictive credit limits.

Who Benefits Most from This Credit System?

This credit system is especially beneficial for:

Hula Global gives these brands the ability to spend more on business growth activities such as marketing and inventory management.

Hula Global is disciplined with credit on the other end of the spectrum. Late payments, credit terms, condition breaches, and other instances of bad behavior on the account will lead to a tightening of credit limits and even a complete removal of credit in the future.

The focus of this is to keep the balance of the system in a way that keeps it sustainable and beneficial for Hula Global and its partners.

To conclude, Hula Global extends credit based on the previous year's purchase values of the brand and the length of the brand’s business relationship that it had with Hula Global. Brands that have a partnership duration of two year can get a maximum of 50% credit.

Brands that have more than 2 years of partnership can get a maximum of 75% credit.

This relationship-based approach is unique and allows Hula Global to deliver on its promise to finance brand growth.

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