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Rosenthal Provides $750,000 Purchase Order Finance Facility for Manufacturer and Importer of OEM Industrial Components
March 2, 2020
Source: Rosenthal & Rosenthal
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 purchase order finance facility. The deal will support the production financing requirements of an Illinois-based manufacturer and importer of mechanical components for large customers in the OEM industrial sector.
The company’s funding needs changed when it began to diversify its product sourcing requirements and required a financial partner with significant international trade experience. A consultant familiar with Rosenthal’s expertise introduced the client to Rosenthal.
Based on a review of and discussions with the company’s overseas suppliers, Rosenthal established a $750,000 purchase order finance facility that allowed the client to fund the production of product backed by sales orders from large industrial customers. With Rosenthal’s assistance, the client no longer was forced to rely solely on China as a sole production source.
The transaction’s production financing requirements involved structuring purchases from several Asian component suppliers. The funding was provided via letters of credit as well as cash against documents, as the specific requirements differed for each supplier. Cash funding for freight, duty and logistics costs was also incorporated into the facility. Rosenthal’s advance rate was 100% on the cost of the presold inventory.
“As concerns continue to grow around the spread of coronavirus, companies are now faced with new supply chain challenges that highlight the need for importers to diversify their production sourcing strategy,” said Rosenthal Division Head Paul Schuldiner. “This transaction is a great example of Rosenthal’s experience facilitating inventory financing solutions for companies with changing sourcing requirements. Purchase order financing is a valuable tool to help industrial product importers take advantage of larger sales opportunities with soundly structured international trade financing.”
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 independent 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.
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