Rosenthal & Rosenthal, Inc. Provides $2.4 Million Purchase Order Finance Facility for Florida-based Government Contractor

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 purchase order finance facility to support the production financing requirements of a Florida-based minority-owned government contractor.

A financial consultant reached out to Rosenthal’s Purchase Order Financing team through a recommendation by a third-party factoring company serving government contractors. A mutual client of the consultant and the third-party factor required purchase order financing related to a contract with a security branch of the U.S. government. Rosenthal established a $2.4 million purchase order finance facility, which allowed the client to fund the production of containers for use in training and storage required to fulfill the government contract.

The production financing requirements of the transaction involved the funding of purchases from an overseas supplier using letters of credit and cash funding for freight and duty. Rosenthal’s advance rate was 100% on the cost of the presold inventory. The third-party factoring company purchased the accounts receivable due from the federal government and repaid Rosenthal’s purchase order financing, effectively satisfying all elements of the client’s supply chain financing. 

“We were pleased to have been asked to participate in this transaction and partner with the company’s existing factor to finalize an inter-creditor agreement within 24 hours and secure a sound financing solution for the client,” said Rosenthal Division Head Paul Schuldiner. “When timing is critical, PO financing is an excellent alternative when conventional financing is insufficient because it can quickly assist government contractors in successfully bidding, winning and executing on larger opportunities. As in this transaction, the client benefits when its factoring and PO financing source work in tandem, both of whom bring experience and expertise with the unique requirements of government contracts.”   

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.