Rosenthal Closes Two Purchase Order Financing Transactions Totaling $3.5 Million

Rosenthal & Rosenthal, Inc., the leading factoring, asset-based lending, purchase order financing, d2c and e-commerce inventory financing firm in the United States, today announced the completion of two purchase order financing transactions totaling $3.5 million.

A women’s accessories and textiles company based in New York was seeking a new financing arrangement to support the purchase of pre-sold inventory purchases to multiple retail customers. Rosenthal was introduced to the client when its current lender was unable to provide the financing the company needed to support their growth. Rosenthal provided a $1 million purchase order financing facility, utilizing both cash against document payments and letters of credit to support the pre-sold inventory purchases from multiple overseas suppliers.

A New York-based digital canvas and software technology company was seeking a new financing facility after partnering with a new supplier for purchases of large shipments to a major creditworthy customer. The company was in the process of refinancing their existing term loan and their third-party bank factor brought in Rosenthal to provide a purchase order financing facility that would work in tandem with their existing funding. Rosenthal was able to step in and enter into a tri-party intercreditor agreement with the new term loan lender and bank factor to provide a $2.5 million purchase order financing facility with a $10 million volume commitment. As with many new supplier relationships, the supplier was initial looking for large cash deposits from the client. Rosenthal was able to utilize Letters of Credit in place of cash deposits to fulfill the large orders.

“In both cases, Rosenthal’s ability to move quickly to get these clients the working capital they needed to meet demand and fulfill significant sales opportunities set us apart,” said Megan Flaherty, Senior Vice President of Rosenthal’s Purchase Order Financing division. “Our flexibility, our expertise in purchase order financing and our ability to work seamlessly with third-party lenders allows us to create soundly structured financing solutions for all parties that allow clients to scale their relationships with suppliers and take advantage of growth opportunities.”

For more information about Rosenthal and these transactions, please visit www.rosenthalinc.com and contact Megan Flaherty at MFlaherty@rosenthalinc.com  or 646-965-2471.