Rosenthal’s Financing Helps Food & Beverage Packaging Manufacturer Expand Business, Double Revenue
Rosenthal’s Financing Helps Food & Beverage Packaging Manufacturer Expand Business, Double Revenue
The Challenge
A food and beverage packaging manufacturer was approached by several of its major beverage customers and asked to significantly ramp up production to meet increasing demand amid the COVID-19 pandemic. The influx of new orders would double the client’s revenue and it was an opportunity the company could not pass up. Rather than seeking out more permanent equity from its investors and other shareholders, the company looked to Rosenthal to help finance the material and direct labor costs through purchase order financing.
The Fix
Rosenthal quickly structured a supply chain finance solution for the client in the form of a $1 million work in process production finance facility. Rosenthal’s financing allowed the client to secure specialized packaging material from a large domestic manufacturing supplier and funded the direct labor required to fulfill the incremental sales orders. The deal involved issuing purchase guarantees and cash payments on terms to the domestic supplier as well as cash funding for the direct labor costs.