About the Business
Buttercream Clothing Inc.
PO Box 8008
Buttercream Clothing Inc. is an Alberta corporation.
Candice Munro: Candice is the inspirational force behind the locally produced, ethical clothing line. Growing up in her parents business Candice was always someone who was destined to start her own business. In 2013 while talking about her sister-in-law’s Etsy store (see entrepreneurship runs in the family) she decided to start selling Buttercream Aprons online. Quickly this switched to clothing as the demand for her ethically produced, high-quality products skyrocketed. This rapidly expanding business has a large, loyal customer community selling online and through wholesalers across Canada.
Nathan is the co-pilot of Buttercream Clothing. After moving their family and business from Kelowna to Calgary in 2014, Candice and Nathan quickly realized that Nathan was going to need to join Buttercream full-time. This has allowed both parents to get to spend more time with their family, all while building their business. As an Chartered accountant, he manages the bookkeeping, accounting and much of the supply chain that is so crucial with their made-to-order products.
Candice Munro owns 100% of Buttercream Clothing Inc.
Description of Business
Buttercream Clothing Inc. is a made-to-order women’s clothing line with all of their production done here in Canada. Each item is constructed (designed, cut, sewn and finished) ethically by contractors in Calgary and Kelowna. Their clothes are made to last using luxurious, high quality fabrics that feel as soft as butter on your skin. Nothing feels quite as delicious as wrapping yourself in Buttercream clothing in the morning and feeling chic yet wonderfully cozy all day long.
The business started in beautiful Kelowna, British Columbia, where Candice had the simple idea of making cute, vintage-inspired aprons to sell online. With a name just as sweet to match, Buttercream Aprons sprung to life. As word quickly got out about Candice’s delicious designs and whimsical fabrics, orders began flowing in. Candice found herself whipping up so much more than just aprons. Her modest one-woman production soon blossomed into a full clothing and accessories line.
To meet the growing demand for gorgeous, ethical clothing made in Canada, Buttercream Aprons evolved into Buttercream Clothing. Having grown rapidly from when Candice was viewing this as a side business, Buttercream Clothing now has 21 people involved in the manufacturing process for them and uses two manufacturing facilities in Calgary. They sell their goods through their website (buttercreamclothing.com) and through a over 50 wholesalers across Canada.
Use of Funds
With rapidly expanding sales across Canada, Buttercream is looking to take the next step in their development. They are looking to raise $25,000 through their loan with ATB LendR. Funds will be used to help in the initial phases of opening a new centralized facility in Calgary. This facility will have a show room, offices, a highly efficient production floor and warehouse. By centralizing their operations they aim to:
Increase their margins substantially through quicker and more efficient production (from order to shipping in 2 days vs the current 1-2 weeks)
Have the ability to purchase and store bulk materials at a substantially lower cost
Provide a space for customers to try on products
Build upon their current staff culture
Begin producing a men’s clothing line
Terms of LendR Loans
Loans will have a term of 2 years (24 months), beginning after the loan is successfully funded. Buttercream Clothing Inc. will repay the principal plus 15% interest, calculated as a blended loan. Buttercream Clothing Inc will make monthly payments of 1/24 the total repayment amount. If Buttercream Clothing Inc. chooses to repay the loan early, the principal plus the full interest remaining in the 24 month period must be paid.
Buttercream Clothing Inc. has been in operation less than three years. There are financial, operational, and market risk for any young business. Some that apply specifically to this business include:
Buttercream relies on a supply chain of materials and fabrics for their production that could be disrupted, despite having multiple avenues of supply, at any given time
Despite a loyal customer base and unique products, competitors can arise at any time
As the business relies on nation-wide online sales, disruptions in postal service can effect the business
This Lending Profile does not contain a statement that, in a material respect and at the time and in light of the circumstances in which it is made, is misleading or untrue and it does not fail to state a fact that is required to be stated or that is necessary to make a statement not misleading.
Certified as of: February 17, 2017
By: Candice Munro