Ashford.com Closes $25 Million Credit Line
Ashford.com announced the closing
of a three-year, $25 million revolving credit facility from Congress Financial
Corporation, a unit of First Union National Bank. This debt financing increases the company's
working capital without dilution to its shareholders, and is secured in part
by Ashford.com's inventory of luxury goods.
"We believe we are the first Internet retailer to secure senior credit
financing based on a business model of selling high-end, high-margin
merchandise, with historically lower depreciation of inventory value and
faster inventory turns," said Kenny Kurtzman, CEO of Ashford.com. "This loan
provides us with an even greater cushion in working capital to help us manage
through seasonal demand."
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