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Rosenthal Closes $1M Production Finance Deal for Women's Apparel Company
August 13, 2019
Source: Rosenthal & Rosenthal, Inc.
Rosenthal & Rosenthal, Inc., today announced the completion of a recent $1 million purchase order finance facility to support the production financing requirements of a women’s private label apparel company.
Based in California, the woman-owned and operated company required additional supply chain financing when it received larger than expected orders from several major catalog retailers. The growth opportunity was poised to increase sales by more than 50%, year over year, provided that adequate purchase order financing could be implemented. Purchase order financing was necessary as it was not possible for the company to obtain additional open credit from overseas suppliers.
Rosenthal’s purchase order finance facility involved the purchase of product from the company’s overseas suppliers, with funding through letters of credit, as well as funding of all fulfillment and logistics costs. Rosenthal’s advance rate was 100% on the cost of the presold inventory.
“It is always exciting for the Rosenthal PO finance team to be a part of assisting entrepreneurial businesses so they can capitalize on significant growth opportunities,” said Rosenthal Division Head Paul Schuldiner. “This transaction is a great example of how PO financing can solve the cash flow issues so that all parties in the supply chain can benefit, without the owners having to sacrifice their equity stake by taking on outside permanent investment. PO Financing is an excellent tool for entrepreneurs looking to achieve rapid, profitable growth without giving up control of their business.”
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.