Crossroads Provides PO Facility to Women’s Apparel Manufacturer
Crossroads Financial announced that it provided a $1 million purchase order financing facility to a manufacturer and distributor of women’s apparel and accessories.
The company, a start-up without any vendor credit, turned to Crossroads to open letters of credit for the benefit of its Asian manufacturer. The letters of credit were posted with the backing of purchase orders from their credit-worthy customers. Crossroads is partnering on the transaction with a lender, who is factoring the client’s receivables generated from the purchase order financing provided by Crossroads.
“I have had great success financing startups that have real growth potential,” commented James Rothman, president of Crossroads, when asked about Crossroads Financial providing funding for new companies. “We expect the PO financing to help build inventory so that they might transition to an inventory revolver in the near term.”