TSL Express Daily News

Rosenthal & Rosenthal, Inc., a leading factoring, asset-based lending and purchase order financing firm in the U.S., today announced the completion of a joint $2 million factoring and $750,000 inventory production finance deal for a Georgia-based importer and distributor of recreational sporting products.

A consulting firm well known to Rosenthal had been working with a client in the outdoor recreational sporting products industry. The company was primarily selling to a network of dealers as well as through their own e-commerce platform. Due in large part to the uptick in demand in outdoor recreation gear as a result of the pandemic, the company was now facing double digit sales growth. Their exponential growth was attributed to increased sales from dealers and the company’s website, as well as a large sales program from a major big box sporting goods retailer for a seasonal product line. Given the extraordinarily large seasonal inventory build and the company’s rapidly expanding customer base, the consulting firm suggested that the client engage a factoring and purchase order financing company to assist with their increasing financing needs.

The consulting firm recommended Rosenthal as a preferred partner that had experience structuring complete working capital finance solutions. Rosenthal provided a $750,000 purchase order finance facility, allowing the client to obtain goods from its major overseas suppliers by funding cash against documents as well as funding freight and duty. The company had reached its limit on open account terms with its supplier, which threatened to expose the company to risks in its supply chain if a mutually agreeable solution with their supplier could not be achieved. Given that potential risk, Rosenthal’s PO financing facility offered the client a more soundly structured solution. Along with an additional $2 million factoring facility from Rosenthal, the client now had the working capital they needed to pursue these significant growth opportunities,

“Rosenthal’s track record of success working with growth companies to address challenges in their international supply chains is one of the main reasons why we are often called upon by our partners as a preferred resource,” said Rosenthal PO Finance Division Head Paul Schuldiner.

“Rosenthal was a great fit for this client because we were able to offer a combination of PO funding and factoring as part of a single financing solution,” said Leigh Lones, Senior Vice President and Southeast Regional Sales Manager at Rosenthal. “Many clients come to us because we’re able to deliver a variety of working capital solutions that work seamlessly together and are designed to address a company’s specific needs.”

For more information about this transaction and Rosenthal’s Factoring and PO Finance capabilities, please visit www.rosenthalinc.com and contact Leigh Lones at 770-773-6511 or LLones@rosenthalinc.com or Paul Schuldiner at 212-356-1703 or pschuldiner@rosenthalinc.com.

About Rosenthal & Rosenthal

Rosenthal & Rosenthal (www.rosenthalinc.com) is a 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.