Spring closes $25 million in equity for supply-chain finance

Spring announced $25 million in new equity funding on April 10, with participation from existing investors and HOF Capital. The New York company supplies purchase-order finance and invoice factoring to consumer packaged goods brands.

The financing addresses a particular cash-flow problem: a brand may need to pay for production and inventory long before a retailer settles its invoice. Spring says repayment comes directly from clients’ retailer and distributor customers. Its own equity covers first losses within its funding structure, supporting the credit lines supplied by capital partners. That makes the equity round different from an announcement of $25 million lent to brands. Spring also offers software for working-capital decisions and plans further automation of financial operations.