Rosenthal Provides $1.25 Million Production Finance Facility for New York-based Kitchen and Cookware 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 $1.25 million purchase order finance facility to support the production financing requirements of a New York-based importer and distributor of kitchen and cookware products.

The company had been operating modestly with sales from infomercial-based e-commerce channels as well as smaller catalog retailers. As sales increased, the company was approached by both a large e-commerce subscription box retailer and a large big box retailer, both of whom were interested in having the company develop signature cookware lines for their respective distribution channels. Production cycle timing, a challenging shipping schedule and ongoing freight and logistics issues facing importers from Asia led to increased cash flow strain. Additionally, the company’s overseas supplier was requiring a deposit to start production as well as payment before final delivery.

Rosenthal’s purchase order financing facility allowed the company to fulfill the sales program and deliver the products on time to the retailers. As an alternative to cash deposits, documentary letters of credit were used to fund the purchase of product from the company’s overseas supplier, enabling the supplier to obtain its own financing to procure the raw materials and fund all production costs. Cash funding was also provided for fulfillment and logistics costs. Rosenthal’s advance rate was 100% on the cost of the presold inventory.

Rosenthal worked with a third-party accounts receivable financing company on this transaction. The accounts receivable financing solution created access to additional liquidity for the company, over and above the repayment of the purchase order financing provided by Rosenthal, accelerating the cash flow cycle of the overall transaction.

“Rosenthal was pleased to assist this growing kitchen and cookware company in expanding its sales distribution channels. This transaction capital program allowed our client to fulfill orders in a segment that has seen significant growth because of the pandemic,” said Rosenthal Division Head Paul Schuldiner. “We look forward to continuing to create and implement unique financing solutions for growth companies selling across multiple distribution channels, including e-commerce and brick and mortar.”

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.