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Rosenthal Closes Factoring Deal w/CA-based Cosmetic Company Amid COVID-19
August 4, 2020
Source: Rosenthal & Rosenthal, Inc.
Rosenthal & Rosenthal, Inc., the leading factoring, asset-based lending and purchase order financing firm in the U.S., today announced the completion of a recent multi-million factoring deal with a California-based cosmetics business that successfully shifted its production to aid in the fight against COVID-19.
In the early stages of the pandemic, the owners of a start-up cosmetics company saw a void in the marketplace for much-needed hand sanitizer that was in short supply. Recognizing a tremendous growth opportunity, the company immediately took steps to reimagine their product offering and pivot their existing production to produce hand sanitizer.
With nationwide shortages of PPE and other protective products on the rise as the pandemic quickly spread, the company experienced a surge of new customers almost immediately, and watched their new product fly off the shelves. Many of the company’s new customers, who were initially paying in advance, were now requesting terms. In dire need of credit coverage and cash advances to maintain a consistent flow of product, the company’s accountant referred them to Rosenthal.
Recognizing the urgency of the situation, especially as more and more competition was cropping up, Rosenthal’s West Coast team quickly intervened to support the company with a robust factoring solution. Rosenthal was able to get comfortable with the deal so quickly and close the transaction in only two weeks because the owners were well known in their community and known to Rosenthal. The rapidly growing business had some unique requirements, but Rosenthal was able to work with the owners’ established customized processes to help meet their specific needs. With cash advances to support their growing production needs and credit coverage to protect their increasing number of new customers, the company was able to keep their business moving forward and deliver their new hand sanitizer in a timely fashion.
“In the early phase of the pandemic, we saw many companies thinking beyond their traditional product offerings, not only to do their part in the fight against COVID-19, but also to take advantage of new opportunities that arose in the marketplace,” said Maria Contino, SVP and Western Region Sales Manager at Rosenthal. “Our deep relationships with the retailers and our ability to act quickly to finance their immediate needs, made Rosenthal the perfect partner to help this company take advantage of new growth opportunities in the current environment.”
For more information about Rosenthal and this transaction, please visit www.rosenthalinc.com and contact Maria Contino at 310-245-7580 or MContino@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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