Robert Grbic and the Power of “Fallen Angels” at White Oak Commercial Finance Photo courtesy of Unsplash
BY LAURIE MELCHIONNE
President and CEO of White Oak Commercial Finance, LLC, Robert Grbic has been with the company for almost 20 years. White Oak provides companies with direct lending strategies that integrate themselves into the very heart of the business; from immersing itself into the company’s business model, to walking the floors of their storefronts, merchandise sections in malls and the layout and environment of their offices, no stone is left unturned when it comes to boosting a brand’s entrepreneurial dreams. In today’s competitive market, when many start-ups and veteran corporations alike took a major hit from the aftermath of a COVID-19 economy, “fallen angels” are the type of businesses that Grbic and White Oak value the most. According to Grbic, anyone has the potential to skyrocket success and breathe life into a business that has been stumbling. Mr. Grbic, who is also one of this year’s honorees at the Mann Charitable Foundation Annual Golf Outing, sat with Fashion Mannuscript and explained just what makes “fallen angels” so special.
What is White Oak known for? What can brands learn from its services? We’re different than most lenders. We go to great lengths to understand a client’s business model to provide the financing model that accomodates the borrower’s needs. At the end of the day, a good loan comes with a good business model and a strong management team. You have to know about the industry to gauge what’s a good model. Too many lenders in the marketplace rely on collateral and ration analysis, which are important, but you also have to understand a company from the very heart of the business and up. That comes with really analyzing what their business model is. That way, you can learn why a company had bumps in the road, what kind of business formula they use or why you may have to go higher on advanced rates when someone builds inventory. This all starts with the business model. Understanding management abilities is also key. We want to understand how someone operates a company and what their strengths and weaknesses are. We can summarize that pretty quickly by looking at a company’s dashboard, and then we can tell them what they are doing right or wrong and what needs to be addressed.
What is a “fallen angel” and why does White Oak target them? “Fallen angels” are companies that stubbed their toes from a financial perspective, and are not “bankable” by traditional measures. We like them because they generally have strong business models and management teams and have been impacted by temporary, micro-economic challenges. We’ll look at someone and tell them why and how they have to up their momentum. There are other companies that just can’t get the appropriate financing. Working with these “fallen angels” from the ground up often fosters growth opportunities, both for White Oak and the borrower’s entrepreneurial goals.
What relationship does White Oak have with the apparel industry? We mostly finance apparel importers, which most apparel companies are today. We really understand the industry’s cycle of operations. Right now, most apparel companies are placing orders for fall collections. You have to understand the dynamic that when companies place orders, a lot is going on. They may need deposits and they may need to adapt to changing fashion trends and supplier demands. A lot of brands are still recovering from the supply chain issues experienced during the pandemic. Because of these problems, goods were late for deliveries. Financing fashion is vastly different from financing, for example, a steel mill. We tackle investment from different angles. We ask questions like, “What’s your philosophy on ordering inventory?” or “What’s your philosophy on disposal of excess inventories?” Those are some of the traits that good apparel operators have, which can give them a
32 | FM June/July 2023
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