Rosenthal Provides $5 Million Dual Production Finance and Asset Based Lending Facility for Specialized Horticulture Lighting Manufacturer

(NEW YORK) – October 16, 2019 –Rosenthal & Rosenthal, Inc., the leading independent factoring, asset based lending and purchase order financing firm in the United States, today announced the completion of a recent combined $5 million inventory production and asset based lending deal for a private equity-owned manufacturer of specialized LED lighting systems for the horticulture and cannabis sectors. Headquartered in Texas, the company is part of the portfolio of a large New York-based private equity firm specializing in agricultural-related investments. 

With traditional farming and cannabis suppliers relying more on specialized LED lighting to improve indoor production and enhance product yield, the company was facing a larger and expanded order book. While the company’s long-term capital needs were being supported by the private equity group, the client still required growth working capital to address the uptick in sales orders it was experiencing.

Rosenthal’s combined $5 million production/work in process and asset based lending program allowed the client to obtain the required components from multiple domestic and overseas suppliers, both by issuing letters of credit and domestic purchase guarantees, as well as cash funding for direct labor and logistics costs. Once the components are received, the company’s proprietary technology will be added to complete assembly of the lighting equipment, before shipping and invoicing the end customer.  As the resulting accounts receivable are created, Rosenthal’s asset based lending facility will repay the production financing and provide incremental liquidity to the company. 

“Working with Rosenthal on this deal meant that the company did not have to look to the private equity group to fund its working capital needs,” said Rosenthal Senior Vice President Mark Collins. “Bundling purchase order financing with asset based lending allows clients to effectively support short-term working capital needs, without putting undue strain on existing funding sources.”

“As the cannabis industry continues to grow at an exponential pace, we’re seeing more and more companies crop up that are offering ancillary products, such as technology, packaging, lighting or other equipment,” said Rosenthal Asset Based Lending Division Head Rob Miller. “Rosenthal has the experience and resources required to provide the short-term inventory financing tools and asset based lending solutions these companies often need to scale their businesses.”

“Rosenthal’s PO Finance and ABL Divisions have a proven track record of working with private equity-owned companies that are experiencing rapid growth,” said Rosenthal’s PO Finance Division Head Paul Schuldiner. “Purchase order and production financing is a critical short-term inventory financing solution that helps companies fulfill incremental sales.”

For more information about Rosenthal and this transaction, please visit www.rosenthalinc.com and contact Paul Schuldiner at 212-356-1703 or PSchuldiner@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.