Rosenthal Provides $950,000 Production Finance Facility for California-based Cosmetic and Beauty Company

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 $950,000 purchase order finance facility to support the production financing requirements of a California-based cosmetic and beauty products company.

A seasoned entrepreneur who had successfully built and sold a beauty and wellness business was now at the helm of a new beauty brand incubator. The company was already running a direct-to-consumer business for several new brands, but faced significant financing hurdles when it received a large sales program from a major brick-and-mortar retailer. The new orders created production capacity issues and cash flow challenges that threatened to disrupt the timely delivery of the products to the retail customer. Recognizing the benefits of production financing, the client’s outside CPA introduced the company to Rosenthal’s West Coast office to quickly put a production financing program in place.

Rosenthal’s work in process production financing program required both payments to overseas suppliers for packaging as well as payments to domestic suppliers for ingredients, processing and fulfillment. The purchase of product from the company’s overseas supplier was funded by utilizing a combination of documentary letters of credit and documents against payment. In addition, cash funding was provided to a domestic contract manufacturer for processing, fulfillment and logistics costs to complete and ship the finished products. Rosenthal’s advance rate was 100% on the cost of the presold inventory.

“Rosenthal is committed to expanding our production financing program opportunities for companies in the cosmetics, beauty and wellness space,” said Rosenthal Division Head Paul Schuldiner. “This particular transaction capital program made it possible for our client to fulfill their orders from a large retailer, while allowing them to address the cash flow needs of the direct-to-consumer distribution channel internally. We’re pleased we were able to provide our client with a platform to exponentially grow their business and execute on their omnichannel sales strategy.”

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.