Clearco and Cavela Team to Help eCommerce Firms Weather Tariffs
Clearco, a provider of growth capital for eCommerce, has teamed with Cavela, an eCommerce product sourcing/vendor management platform.
The collaboration, announced in a news release Wednesday (April 2), is designed to simplify operations for online businesses by linking Clearco’s funding options with Cavela’s network of more than 200,000 suppliers.
“With tariffs on everyone’s radar, this partnership is timely,” Cavela CEO Anthony Sardain said in the release. “We’re helping brands scale confidently and efficiently through these market shifts. In times of change, it’s crucial to conserve production costs, and that’s exactly what we unlock.”
According to the release, eCommerce brands that use Cavela can now access Clearco’s capital to pay manufacturers and suppliers more efficiently, with the goal of improving vendor relationships and managing costs, particularly in light of tariffs.
The companies say the partnership is designed to remove funding obstacles and enhance sourcing capabilities, allowing faster scaling and better margin control for eCommerce merchants and streamlining the product lifecycle, from sourcing to payment, for online retailers.
The announcement comes hours ahead of the White House’s planned unveiling of new reciprocal tariffs on a number of countries. These will join the tariffs President Donald Trump has already imposed on Canada, Mexico and China, and on automobiles, steel and aluminum.
As noted here Tuesday, economists say the tariffs — intended to drive down other countries’ trade barriers by applying rates matching the tariffs each country levies on American imports — could hurt America’s GDP, thanks to lower sentiment for the country and product boycotts.
PYMNTS explored some of the ways companies can survive the tariff situation in a recent conversation with Matt Carey, senior vice president, office of the CFO at FIS.
“There’s technology that can help,” Carey said. “But it really depends on the industry. If I’m a computer manufacturer and I have a bunch of chips on order from my suppliers, I can’t just change my chip supplier overnight.”
He added, “If I have visibility into my working capital, I can negotiate better agreements and pre-buy materials like aluminum or steel,” and noted that for companies lacking large reserves, supply chain financing solutions present an alternative. “That’s a win-win for businesses, suppliers, and even banks, who favor these financing arrangements.”
Visibility is key to these strategies, Carey told PYMNTS, noting that without a centralized view of their finances, it’s tough for a company to gain the upper hand when negotiating.
“Banks love when companies have clear financial visibility because it mitigates risk,” he said. “Risk mitigation is what payments and finance are all about. If you demonstrate accurate liquidity management, it strengthens credit ratings and lowers the cost of capital.”
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