Rosenthal’s Factoring Facility Solves Furniture Company’s Cash Flow Challenges
Rosenthal’s Factoring Facility Solves Furniture Company’s Cash Flow Challenges
The Challenge
A family-owned and operated furniture business with a proven track record of success was facing rapid growth with a projected uptick in volume of 30-35% over 12-18 months. When the company’s largest vendor shortened its terms, forcing the company to pay the vendor more quickly, the client faced significant cash flow strain.
Even though business began to pick up through its major e-commerce channels, when COVID-19 hit, even more pressure was placed on the company’s inventory levels. In the current environment, terms with a new overseas vendor were tight. Fortunately, the company was able to create a new product that would open up opportunities with new customers.
The Fix
Needing advances on account receivables, the client was introduced to Rosenthal. By offering a factoring facility with advances to address the issues with vendors. Rosenthal was able to quickly step in to provide a factoring facility with advances on account receivables under a $500,000 line, as well as credit protection to help the company assess new customers for its new product line.