Rosenthal Trade Capital, a new division of Rosenthal & Rosenthal, closed a $1.5 million purchase order finance deal with a global distributor and supplier of electronic, computer and aviation parts, components and hardware.

The facility will assist with the immediate purchase of goods against several large existing sales orders. By leveraging this new financing resource, the client can now pursue a larger incremental sales volume with prospective customers that they previously may have passed on due to lack of liquidity.

RTC will fund two different transaction types for this client: off-the-shelf domestic component purchases with quick-turning transactions and longer term (import production component) purchases. RTC’s extensive international trade expertise will provide letters of credit and cash against documents funding to purchase inventory that is pre-sold to end customers.

The client was referred to Rosenthal by the company’s existing asset-based lender. The lender was looking to have a purchase order finance facility in place so the client would be better positioned in the marketplace to take advantage of the projected upswing in U.S. defense spending.