Rosenthal Upsizes Inventory Purchase Commitment to $60 Million for California-Based Solar Products Distribution Company
(NEW YORK) – December 14, 2021– Rosenthal & Rosenthal, Inc., the leading factoring, asset based lending and purchase order financing firm in the U.S., today announced it has upsized its recent inventory purchase commitment to support the production financing requirements of a California-based importer and distributor of solar panels, increasing the initial $30 million commitment to $60 million.
The initial $30 million inventory purchase commitment in August 2021 allowed the company to fulfill new and growing sales opportunities without pursuing an equity raise alternative which would have diluted ownership for the existing management team and shareholders. Cash against document payments were used to fund the inventory cost and were paid to the company’s overseas supplier. Cash funding was also provided for fulfillment and logistics costs. The collaborative financing solution created additional factoring of the accounts receivable for the third-party factoring company, who also doubled the size of their factoring facility. Moreover, the additional liquidity was over and above the repayment of the purchase order financing provided by Rosenthal, accelerating the cash flow cycle of the overall transaction.