Rosenthal Provides $11.5MM PO Finance Facility to Florida-Based Apparel Company

Rosenthal & Rosenthal, a factoring, asset-based lending and purchase order financing firm in the United States, completed a $11.5 million purchase order finance facility to support the production financing requirements of a Florida-based apparel company.

Rosenthal has known the company’s management team for nearly 10 years from a prior relationship through the firm’s purchase order financing team. The company experienced explosive sales growth when it launched several new product lines in its men’s and women’s divisions and expanded its relationship with a major retailer, which created a significant concentration for the business. This rapid growth is transforming the business, with sales projected to increase from $40 million to more than $100 million within the calendar year. In addition, as a seasonal business, the company has longer lead times for production and shipping from its overseas supplier base. As a result, this incremental sales growth has created significant cash flow strain that could not be supported by the company’s financing arrangement with their existing lender, the factoring division of an international bank.