Rosenthal’s Southeast Office Closes Purchase Order Financing, Non-Recourse Collection Factoring Deals

Rosenthal & Rosenthal, Inc., the leading factoring, asset-based lending and purchase order financing firm in the U.S., today announced the completion of two separate deals – a $750,000 purchase order finance facility for an automotive client and a $10 million collection factoring agreement for a mattress company. Both clients will be serviced by Rosenthal’s Southeast office in Atlanta.

An Alabama-based importer and distributor of new passenger car and light truck tires faced challenges as it was diversifying its product sourcing. When the company shifted production from China to a supplier in Vietnam, the new supplier required payment assurance before producing and shipping product. The client was working with a regional asset based lender who referred the company to Rosenthal’s Southeast office specifically because of Rosenthal’s purchase order financing and international trade expertise.

Rosenthal quickly established a $750,000 purchase order finance facility that allowed the client to fund the production of product, backed by sales orders from a large end customer. The facility included funding via letters of credit as well as cash funding for freight, duty and logistics costs, all of which allowed the client to reduce its reliance on China as its sole production source.

“The supply chain challenges that have emerged in the current climate surrounding COVID-19 have made it even more critical for importers to have a diversified production sourcing strategy,” said Rosenthal Division Head Paul Schuldiner. “This transaction highlights our team’s extensive knowledge facilitating inventory financing solutions for companies with changing sourcing requirements. Purchase order financing is a valuable tool for importers who want to take advantage of larger sales opportunities with properly structured international trade financing.”

One of the largest players in the mattress business was in need of a factoring partner to help the company expand its reach to new retail markets. With its U.S. headquarters in Tennessee, the company primarily sells only to distributors in the U.S., requiring a full prepayment, deposit or credit card payment at delivery. With demand from retailers expected to grow, the company began to offer terms to their retailers but needed a factor to support the transition to that new model.

Rosenthal stepped in to provide a $10 million non-recourse collection factoring engagement, designed to support multiple accounts to which the company intends to extend terms. Rosenthal will also provide back office customer credit and collections support to help the client streamline operations and overhead. 

“Rosenthal’s non-recourse collection factoring facilities are excellent solutions for companies that want to take advantage of new growth opportunities in the current environment,” said Brian Resutek, Rosenthal Account Executive. “Factoring not only gives companies the cash they need to support expansion into new markets, but also helps to reduce overhead and manage receivables – an added benefit for any company without a robust back office.”

For more information about Rosenthal and these transactions, please visit www.rosenthalinc.com and contact Leigh Lones at 470-773-6511 or llones@rosenthalinc.com.

ABOUT ROSENTHAL & ROSENTHAL

Rosenthal & Rosenthal (www.rosenthalinc.com) is the leading factoring, asset based lending and purchase order financing firm in the United States. Founded in 1938 by Imre J. Rosenthal, the firm is now led by the second and third generations of the Rosenthal family. As a privately held company, Rosenthal is committed to providing personalized service and flexible lending to clients across a broad range of industries. Rosenthal has offices in New York, California, Georgia and North Carolina.