TSL Express Daily News

The funding solution supports the company's 2024 growth plans as the firm’s previous lender goes out of business. 

CHICAGO – When Modern Sprout outgrew its current lender, the Chicago-based Garden design shop and manufacturer planted new roots with Republic Business Credit to secure a $5 million asset-based loan at the close of 2023. Modern Sprout is a fast-growing innovator in the “grow-your-own” movement, combining hydroponic growing technology with sleek, stylish and sustainable indoor and outdoor garden solutions.   

Its product portfolio consists of grow kits for everything from kitchen herbs to natural pet treats. They also offer stylish grow lights, gift-ready seed starting kits, plant accessories and more. Modern Sprout sells direct-to-consumer and has partnerships with a range of businesses from standalone neighborhood boutiques to national retailers, such as Target and Kohls.  

In 2023, Modern Sprout learned that its current lending partner would not be able to support the company’s future growth plans. It needed a new partner that could not only accelerate its borrowing capabilities, but truly understand the seasonal needs of an omnichannel, founder-led business. Republic was that partner, stepping up with an ABL facility that made additional inventory funding possible during Modern Sprout’s low season.   

Modern Sprout was connected to Republic by several Midwest referral sources due to its leading reputation across the food, beverage, apparel and consumer packaged goods industries. Those introductions came from a well-known national consulting firm, investment bank and regional commercial bank that were all looking to find ways to support Modern Sprout.   

Republic provided a $5 million asset-based loan that provided additional availability on their inventory and e-commerce sales during their seasonal ramp periods.  

“Republic’s experience in the CPG industry and strong grasp of e-commerce channels made us an excellent partner for Modern Sprout,” said Eric Dorner, Republic’s VP in its Chicago office. “We are excited to support the continued growth of this company that has reinvented its industry and made at-home gardening more accessible to every consumer.” 

“It is our mission to connect people and plants through our unique products and solutions,” said Sarah Burrows, who co-founded Modern Sprout with her husband in 2013. “That is an ambitious purpose that requires us to grow quickly and be adaptable to the market. Republic’s services have allowed us not only to succeed, but to exceed our goals.”  

Republic President Robert Meyers said, “We were so impressed with the entire Modern Sprout team, and it is great when we can provide a working capital facility to people who are truly passionate about their work. The team, including Sarah Burrows, Nick Behr, Kim Chisholm, Allison Hammer, Danielle Kurtz, Chris Todd, Tony Wesley and Jessica Amata, provided us with confidence in the long-term success of this founder-led company in Chicago’s West Loop.”   

In 2024, Modern Sprout plans to expand into additional departments within Target, introduce new products and grow its partnerships with World Market and Container Store. 

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About Modern Sprout 

Modern Sprout is a fast-growing, Chicago-based design shop and manufacturer that has become a leader in the grow-your-own movement with its innovative indoor and outdoor garden-focused lifestyle goods. The genius behind the brand is translating the logic and utility of hydroponic growing systems into simple, stylish and sustainable products that thrive inside the average home. Modern Sprout’s collection of over 150 SKUs has introduced a new and highly sought-after category to home and gift retailers – gifts that grow. In addition to selling direct-to-consumer, the brand’s rapidly growing retail footprint includes Target, Kohls and Barnes and Noble, as well as an amazing list of independent boutiques/stores. 

Media Contact: 

Danielle Kurtz, Modern Sprout 

dkurtz@modsprout.com 

About Republic Business Credit 

Republic Business Credit is a nationally recognized commercial finance company supporting the working capital requirements of companies nationwide, including private equity and entrepreneurial businesses. Republic provides asset-based lending, e-commerce, ledgered lines of credit, traditional factoring, factoring and Fast AR Funding. Republic partners with its clients to provide up to $15 million in senior credit facilities to rapidly growing businesses, start-ups and companies experiencing recoverable distress. Republic is recognized by the Secured Finance Network as one of the largest finance companies in the United States of America. Republic is proud to be headquartered in New Orleans with additional offices in Chicago, Los Angeles and Houston. Republic is a wholly owned subsidiary of Renasant Bank.