Accelerating Growth for an Electronics Merchant through Invoice Financing 

Background 

Quantum, an ambitious UAE-based consumer electronics merchant selling products like TVs, refrigerators, and LED panels on online marketplaces (Amazon and Noon) was experiencing rapid demand. To support his operations, the merchant initially secured AED 500,000 ($136K) 

invoice financing facility from Zelo. The facility was meant to bridge the cash gap between making a sale and receiving the marketplace payout. The retailer had been in business for a few years and carried around 300 SKUs, but growth was constrained by limited working capital. Traditional lenders had either rejected his loan applications or offered funds at prohibitively high rates, a common plight for businesses lacking significant collateral. The stage was hence set for Zelo to step in with a more entrepreneur-friendly financing solution. 

The Challenge 

Despite growing demand and strong sales momentum, Quantum faced significant cash flow issues, waiting up to 60 days to receive payments from online platforms. Normally, when a product was sold, the marketplace held the funds for about two months before releasing payment. This delay meant cash was “frozen” in transit, leaving the entrepreneur unable to quickly restock inventory or expand their catalog. 

In practical terms, the merchant could only rotate available capital about 6 times per year – limiting how often they could buy new inventory to fuel growth. The cash squeeze led to frequent stockouts and missed sales opportunities, especially during peak seasons like Eid and New Year. 

Compounding the issue, conventional financing offers were out of reach. Traditional financiers viewed the online retail business as risky – with no physical storefront and inventory often on consignment with marketplaces, Quantum lacked hard assets for collateral. After being rejected after multiple loan applications (or offered loans with high interest rates and fixed repayment schedules), the merchant felt stuck and needed a way to unlock the cash tied in receivables immediately after each sale, to keep the business growing. 

Zelo’s Solution 

Zelo provided a tailored invoice financing solution that directly addressed these pain points. With Zelo’s facility, the merchant could instantly draw cash for each sale rather than waiting for 60 days. In practice, every time a sale was made on Amazon or Noon, Zelo would auto-fetch the invoice and sales confirmation from vendor marketplace portals and advance upto 90% of the invoice values upon request right away. This effectively turned Quantum’s accounts receivable into same-day cash. Instead of cycling capital 6 times a year, Quantum could now invest continuously – up to 18 cycles a year – thanks to immediate liquidity. More frequent

capital rotation meant Quantum could place new orders with suppliers much faster and never miss a high-demand window. 

Crucially, Zelo’d onboarding and usage were smooth, fast and personalized. Setting up the facility was completed in days, not weeks, and required far less paperwork than any bank process the merchant had experienced. The merchant was among the first to use Zelo’s one-click mobile app for drawdowns, which made accessing funds as easy as tapping a button. This tech-driven approach saved him time and hassle, allowing him to focus on sourcing and selling products rather than worrying about cash flow. 

Zelo’s team also worked closely with the merchant, understanding the dynamics of marketplace sales and tailoring the financing to match sales volumes. As sales grew, Zelo proactively increased his credit facility (eventually up to AED 4,000,000) to ensure he always had enough headroom to finance larger batches of inventory. 

Results and Impact 

Freed from cash flow shackles, Quantum embarked on an impressive growth trajectory. Their catalog rapidly expanded from 300 SKUs to over 3,500 SKUs – more than a tenfold increase in variety. Having cash on hand meant the merchant could bulk up inventory for high-demand items and experiment with new product lines without fear of running dry. 

The impact on revenue was striking: annual sales jumped from roughly AED 2 million to AED 7 million within a couple of years of using Zelo’s financing. This 3.5x revenue growth was fueled by always having the right products in stock and ready to ship. The merchant no longer lost out on sales due to inventory shortages; in fact, he became a top seller in several categories. 

As Quantum’s business scaled, Zelo scaled with it. The financing facility that began at AED 500K grew by eightfold to AED 4 million to support a larger receivables volume. The infusion of working capital also enabled strategic investments: the business hired 7 new employees across R&D, operations & marketing. These new team members helped improve product sourcing, streamlining fulfillment operations, and boost marketing campaigns. 

The merchant often cites Zelo’s partnership as a turning point. Before, he was constantly firefighting cash flow issues; now, he could plan for the long term. He remarked how Zelo’s personalized support and understanding of their business helped him succeed. Additionally, using the Zelo app for financing made the process almost invisible in day-to-day operations – funds flowed in seamlessly behind the scenes, so he could concentrate on listing new products and serving customers. 

Ultimately, Zelo’s invoice financing unlocked the latent potential of his business, translating strong sales into actual growth rather than being stalled by slow payments.

Key Takeaways: 

- Bridging Cash Gaps Fuels Growth: By eliminating the 60-day payment delay from marketplaces, the merchant kept his cash flowing and reinvested it repeatedly. This bridging of cash flow gaps enabled faster scaling of inventory and sales, demonstrating how critical liquidity is for growth in retail. 

- Flexible Financing outperforms Traditional Banks: Zelo’s willingness to finance a digital retailer with no fixed assets bypassed the rigid criteria of banks. The client received affordable, on-demand capital when banks either turned him away or offered onerous terms. This highlights how specialized fintech financing can empower SMEs where traditional lenders can’t or won’t. 

- Technology and Convenience: The ease of Zelo’s process – from quick onboarding to a one-click mobile app for drawdowns – saved the client significant time. He didn’t need to compile endless documents or wait weeks for approvals. Such user-friendly financing meant the owner could focus on business development, not paperwork, giving him an edge in a fast-moving e-commerce market.