Rosenthal Provides $1.8 Million Inventory Production Finance Commitment for Outerwear Company

Rosenthal & Rosenthal, Inc., today announced the completion of a recent $1.8 million purchase order finance commitment to support the production financing requirements of a family owned and operated outerwear company based in Massachusetts.

The company’s third-party factoring company introduced Rosenthal, when the client required additional supply chain financing after receiving larger than expected orders from several retailers. The growth opportunity the client faced would result in a sales increase of over 50% year over year, provided the company could secure adequate purchase order financing. Obtaining additional open credit from overseas suppliers was not an option.  

Rosenthal quickly provided a PO financing facility that involved the purchase of product from the company’s overseas suppliers, with a combination of funding through letters of credit and cash against documents. Rosenthal’s solution allowed the client to meet the different needs of each of its overseas suppliers, as well as funding fulfillment and logistics costs. Rosenthal’s advance rate was 100% on the cost of the presold inventory. Once the inventory arrives, clears customs and is distributed by a third-party logistics facility, the related sales invoices are funded by the referring factor and the Rosenthal PO financing is repaid. As a result of a long established and successful relationship with the factor, the inter-creditor agreement was completed within a single day.

 “As a family owned and operated commercial finance company, Rosenthal is always proud to be a part of assisting family led businesses in capitalizing on extraordinary growth opportunities,” said Rosenthal Division Head Paul Schuldiner. “This transaction is a great example of Rosenthal’s long history partnering with third-party factors, asset-based lenders and banks to deliver the right mix of financing solutions to complement existing lending and factoring relationships.”

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.