SFNET Interview with Paul Schuldiner & Leigh Llones on Rosenthal's Recourse Factoring Division

Rosenthal & Rosenthal’s recourse factoring division, launched earlier this year, allows the company to look beyond the traditional industries served by non-recourse factoring. Here, Rosenthal’s chief lending officer, Paul Schuldiner, and director of Recourse Factoring, Leigh Lones, discuss the recourse factoring division and what they’re seeing in the industry.

TSL: Why did Rosenthal make the decision to expand their offerings to offer both recourse and non-recourse factoring? 

Leigh Lones: As you know, Rosenthal launched our recourse factoring program earlier this year, but we are certainly not new to recourse factoring. By establishing a separate division dedicated to recourse factoring, we are well positioned to look beyond many of the traditional industries that non-recourse factoring typically covers, namely apparel, home goods and furniture.

Paul Schuldiner: Recourse factoring fits very well with service industries like staffing, light manufacturing or assembly businesses. It’s especially useful in situations where employee wages and vendor payments are required well in advance of when the invoice for services is due for payment. It’s also an excellent solution for start-ups, turnarounds and companies that are not yet profitable because they have grown quickly.

TSL: Can you explain how Rosenthal’s recourse factoring complements Rosenthal’s Pipeline division?

Lones: The focus of Rosenthal’s recourse division is to deliver funding against accounts receivable quickly and in a manner that’s easy for clients to understand, with simple agreements and straightforward cost structures. Our Pipeline division was established to serve high-growth direct-to-consumer and e-commerce businesses and works in much the same way as our recourse division, except the funding is against inventory.

Schuldiner: Both of these divisions—recourse factoring and Pipeline—were created to meet specific needs that we saw in the marketplace. In both cases, our clients are able to take advantage of new sales and growth opportunities and keep their businesses running smoothly.