Crossnet Scored Millions In Revenue with Flexible E‑commerce Funding

“There’s no way we would’ve been able to fulfill our Sam’s Club order without SellersFi (formerly SellersFunding). Without the Working Capital, we would’ve lost out on millions of dollars in revenue. Partnering with SellersFi was a game changer for us.”

—Chris Meade, Cofounder of CROSSNET

About CROSSNET

In 2017, two brothers and a childhood friend sat around a fireplace reminiscing about the epic games of foursquare they used to love playing during recess. But this conversation about the past quickly turned into a conversation about the future, one that changed the course of Chris Meade, Greg Meade, and Mike Delpapa’s lives forever.

The trio had a revolutionary idea: a volleyball court divided into four quadrants, merging traditional volleyball with foursquare that became a fun game for kids and adults. And so CROSSNET was born.

What started as a trip down memory lane became what ESPN has called “America’s fastest-growing backyard game.” But the road to scalable growth in the form of annual revenue averaging $10 million and a team of 20+ e-commerce pros wasn’t always a smooth one.

The Challenge: Too Much Demand, Not Enough Capital to Fill the Largest Order In Company History

As with any successful retail brand, keeping pace with the speed of sales wasn’t always easy. As the orders kept coming, CROSSNET’s leadership team quickly realized the delicate balance between managing inventory and cash flow.

“As the business was starting to scale, we started working with large retailers that were putting in large purchase orders. On our end, that was fantastic. But the question was, how can we go and build the inventory when we didn’t have an adequate capital structure?” said Chris Meade.

At the end of 2021, CROSSNET faced a make-or-break challenge: Find a way to fill the largest order yet or risk losing a major deal to one of its competitors. The client in question? Sam’s Club, the famous members-only warehouse clubs valued at approximately $11 billion.

“We had the biggest order in company history come in from Sam’s Club during Q4 of last year: tens of thousands of units. We immediately thought ‘There’s no way we’re going to have the cash flow to be able to pay our vendor to produce this amount of inventory.’”

—Chris Meade, Cofounder of CROSSNET

Why CROSSNET Chose SellersFi and Never Looked Back

With the Sam’s Club order plus other retail demand, CROSSNET needed a fast, reliable funding solution so they didn’t lose these huge deals. The CROSSNET execs met with a few top funding providers but didn’t feel as if any could meet their particular needs.

Then the team came across SellersFi. Looking at the website, they were impressed by our “breadth of products” (Chris’s words, not ours 😉), including Working Capital, Invoice Factoring, and more. Chris and the team knew they had finally found the partner they’d been looking for, a partner who could deliver tailored solutions to fit CROSSNET’s unique needs.

How did the CROSSNET team know they had found their perfect funding partner?

Simple! It was all due to SellersFi’s:

Highly competitive rates
Team of experts and advocates willing to make funding work
Technology, including a one-stop funding portal with critical financial insights

“You don’t know what’s going to happen down the road. And for us, we love having the flexibility of saying to our financing partner, ‘Here’s what’s happening. How can you help us?’ We came to SellersFi with the Sam’s Club opportunity and they said, ‘No problem!’ Having a partner like that, especially when you get a curve-ball thrown at you, and they’re able to just say, ‘We’ll figure it out and make it work for you’ — and deliver on that — is phenomenal.”

—Christopher Koop, CFO of CROSSNET

The Solution: SellersFi Invoice Factoring

The SellersFi solution that best fit CROSSNET’s needs in this case was invoice factoring. This meant no waiting the usual 60-90 days for payment from retailers. As CROSSNET fulfilled its Sam’s Club orders, it simultaneously used SellersFi’s capabilities to factor accounts receivable. With no payment delays, CROSSNET always had cash flow to acquire more inventory.

“We were able to set up an easy process with SellersFi to reduce our leverage and lower interest payments. And at the same time, we got a huge influx of cash from the factor to improve our own working capital status.”

—Chris Meade, Cofounder of CROSSNET

The Result: Millions in Revenue Secured and No Worries About Filling Large-Scale Orders

Getting funding from SellersFi to fulfill the Sam’s Club order showed CROSSNET that selling to large retailers was no longer out of reach. “There’s no way we would’ve been able to fulfill our Sam’s Club order without SellersFi. Without the cash on hand, we would’ve lost out on millions of dollars in revenue. Partnering with SellersFi was a game-changer for us. If we’d been unable to fulfill this order, we would’ve taken a huge hit,” Chris Meade said.

“We’ll be with SellersFi for the long term — for years and years ahead. Honestly, as long as CROSSNET is in business, we’ll absolutely recommend SellersFi to any company out there that needs financing options that are cost-efficient and flexible. In the e-commerce and consumer goods space, SellersFi has been a tremendous partner.”

—Chris Meade, Cofounder of CROSSNET

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