Daily News: January 4, 2018

Rosenthal Provides $1MM PO Facility for Menswear Licensee

Rosenthal & Rosenthal completed a $1 million purchase order financing for a menswear apparel licensee with multiple brands.

The financing facility allowed the client to purchase a collection of menswear products to fulfill its Spring 2018 orders from department stores and specialty retailers, as well as for the company’s e-commerce platform. The supply chain financing requirements involved purchasing multiple products from several international suppliers. The deal involved funding through letters of credit, a prerequisite from the company’s overseas suppliers to start production, as well as cash funding for all logistics costs.

The company was seeking a non-equity based solution to finance its growing Spring 2018 production in advance of the Chinese New Year. During Chinese New Year, importers that lack a proper sourcing and financing strategy often encounter a slow-down in production and shipping by Asian-based manufacturers, which can ultimately hinder sales.

“We were pleased to assist this growing company as they looked to expand their sales through a sound PO financing strategy,” said Rosenthal Division Head Paul Schuldiner.