With interest and enthusiasm for ketogenic diets rising dramatically in the latter half of 2018, Perfect Keto’s sales and site visits were spiking. The team spoke to customers and knew they wanted more options and flavors, and set to work developing four new product lines. But as launch approached, they felt the squeeze.
“Our Amex card limit was too low, and it didn’t allow us to properly invest in ad campaigns to support our product launches,” said Ryan Hanson, Perfect Keto’s CFO and COO. “We tried to get it raised but didn’t hear back from Amex for long stretches, and in this business, you have to strike while the iron is hot. Our customers were telling us what they wanted and we didn’t have the right financing to deliver.”
Ryan knew of other financing options like merchant cash advances and working capital loans, but was concerned about the high interest rates they carried. He sent a text to a few of his friends in finance at other online brands, and one recommended he check out Brex.
“After I submitted our application, I spoke to Matt on the Brex team about what we wanted to do and the limit we needed. Because Brex underwrites on our sales, and because our sales have been really strong, we had the limit we needed from day one.”
With two of the four launches completed, the Perfect Keto team is well on their way to hitting their revenue targets and continuing to invest in their growth.
“I laugh about it now,” Ryan said, “Amex is this big company that I always thought of as the best card around. But they really burned us, and the switch to Brex couldn’t have gone better. I just wish we’d known about Brex sooner because I feel like we missed out on significant growth.”