Rosenthal Bolsters Sales Growth Across the Toy Industry
Rosenthal Bolsters Sales Growth Across the Toy Industry
The Challenge
A California-based toy company operating under its own brand, as well as several iconic licenses, was in need of additional financing to alleviate cash flow strain. When sales growth for one of its prominent licenses quickly outpaced the ability to obtain more open credit from overseas advisors, the company required additional production financing to fill the gap. That financing was necessary to ensure an efficient flow of product from overseas suppliers and smooth to delivery to retail customers.
The Fix
Rosenthal entered the picture and provided a $4 million purchase order financing facility so the company could fulfill an influx of sales orders for a plush toy program with several major retailers. The supply chain financing requirements involved purchasing product from international suppliers, as well as funding fulfillment and logistics costs. As part of the program, Rosenthal also negotiated an inter-creditor agreement with a multi-national bank that was providing a supply chain accounts receivable financing program to the company, offered by one of the major retailers.