1900 per cent sales growth in 6 years for Urbanista thanks to A.B.S. Factoring

Urbanista, an innovative brand for portable audio products, has set itself the goal of being successful not only on the Swedish market, but also internationally. As the company entered a rapid growth phase and expanded into new markets, stable liquidity and efficient receivables management were crucial for success. With the support of A.B.S. Factoring, Urbanista was able to optimise its cash flows while focusing on expansion.

Our customer

Urbanista AB

Urbanista is a Swedish brand for portable audio products characterised by modern design, high quality and innovative technology. The company’s headphones and speakers are available in over 30,000 shops in 90 countries and have established themselves as true trendsetters in the audio segment. Despite growing competition, Urbanista maintains its position on the global market through continuous innovation and a strong brand image.

About the company

Characteristics

Industry: Audio technology
2013: Anders Andréen joins the company
2018: turnover of approx. 14 million euros
2019: turnover of approx. 23 million euros
Website: https://www.urbanista.com/de
Financing: Equity capital, A.B.S. Factoring
Factoring category: Trade

The task

Music lovers all over the world appreciate the in-ear headphones from Urbanista – a brand that has established itself as a trendsetter in the audio industry. The vision: to enjoy music everywhere, without compromising on sound quality, design and functionality. Inspired by the world’s vibrant metropolises, the products bear names such as Stockholm, London and Paris – and have sold millions of units. However, the advent of AirPods & Co. has intensified competition in the audio market. Despite this, Urbanista still manages to win over its fans time and time again with innovative products and a strong brand image. Its greatest asset? The trust of its customers.

The company has undergone impressive development since 2013: Turnover has risen from 1.2 million euros in its founding year to 14 million euros (2018) and 23 million euros (2019). But this success did not come without challenges. “When I joined the company, Urbanista was a struggling business,” recalls CEO Anders Andréen.

“We had massive problems with profitability and liquidity, were struggling with debt and were looking for ways to get the business back on track.”

Despite these hurdles, growth continued. Urbanista became internationally successful with its headphones and speakers. Today, the products are available in 30,000 shops in 90 countries – even in Eurowings in-flight sales.

The solution approach

But then came the COVID-19 pandemic – and with it a severe setback. Retailers stopped their orders, some even had to close – cash flow came under increasing pressure. At the same time, Urbanista launched two new products on the market: an exclusive H&M headphone edition and the first wireless model with noise cancellation.

However, the working capital was not sufficient to secure both the business operations and the new product launches. “We have always invested with passion – even in difficult times. But now we had to find a quick, flexible solution to secure cash flow. Our challenge was to continue to invest in innovation while driving our growth,” says Andréen.

The pandemic also increased business concerns. After all, what good is high demand if the warehouse is empty because you have to wait 30, 60 or sometimes up to 90 days for the sums you have already invoiced? A resulting liquidity gap would jeopardise the ability to deliver.

For Urbanista, the solution to this problem was to sell the outstanding invoices via A.B.S. Factoring. The company was no longer prepared to accept a lack of working capital on top of its business worries. Anders Andréen summarises: “For us, factoring is a good complement to bank loans and other solutions at a time of strong growth. If you get the capital at the same time as you deliver, you can order new products. This has proven to be very valuable for us and our growth.”

The result

Under the leadership of Anders Andréen, Urbanista was reorganised and restructured from a broad-based company to a pure audio brand. “We wanted to try to do one thing really well instead of doing lots of things really badly,” says Andréen. Success was not long in coming: the first headphone model San Francisco, which was launched on the market in the same year, became a bestseller and is still one of Sweden’s best-selling headphones today, seven years later.

“San Francisco is still doing very well, even though it has cables,” says Andréen. The combination of design, colours and overall impression has stood the test of time – and still characterises Urbanista’s design language today.

Thanks to the commercial credit insurance integrated into A.B.S. Factoring, Urbanista can invoice securely worldwide and generate the necessary working capital by selling receivables – without fear of non-payment. “Sleepless nights due to non-paying customers are a thing of the past,” says the company.

The advantages of factoring Full service factoring

(c) urbanista.com

For us, factoring is a good complement to bank loans and other solutions at a time of strong growth. If you get the capital at the same time as you deliver, you can order new products. This has proven to be very valuable for us and our growth.

Andres Andréen

CEO Urbanista AB

Why factoring with A.B.S.?

What tipped the scales in favour of A.B.S. Factoring? Andres Andréen, CEO Urbanista AB, is convinced: “A.B.S. understands our needs and how important it is to us that our customers are treated well”

Financial security through bad debt protection

Thanks to the trade credit insurance integrated into A.B.S. Factoring, Urbanista can invoice securely worldwide and generate the necessary working capital from the sale of receivables. “The fear of non-payment is a thing of the past, because all our receivables are secured,” explains the company.

Personal cooperation at eye level

Urbanista particularly appreciates the direct and uncomplicated local contact. “A.B.S. Factoring in Stockholm is not an overly large company and we have a very good local relationship with the people involved. That suits us perfectly.”

Structured processes with strong backing

In addition to the close support provided by the team in Stockholm, the parent company in Wiesbaden takes care of the necessary processes. “A.B.S. understands our needs and knows how important it is to us that our customers are treated well. That’s why we feel we are in good hands when working with them.”