Rosenthal & Rosenthal completed a $1.5 million purchase order finance facility to support the production financing requirements of a Wisconsin-based apparel company that imports licensed casual wear.
The client experienced an increase in orders when it was licensed for sale by a large national retail chain. The influx of larger-than-projected orders led the company to seek out a solution that would ensure it could make necessary payments to overseas suppliers on time. Rosenthal’s $1.5 million purchase order finance facility allowed the client to address its immediate seasonal financing requirements.
The supply chain financing requirements of the transaction involved the purchase of product from multiple international suppliers via documents against payment for in-transit goods. Rosenthal’s advance rate was 100% on the cost of the pre-sold inventory, inclusive of freight and duty.
“Since the onset of COVID-19, apparel companies have been grappling with uncertainty and changes to the global supply chain,” Paul Schuldiner, division head for Rosenthal & Rosenthal, said. “In order to adapt, companies have been trying to expand their product sourcing relationships, which ultimately requires the use of a funding source that has a strong familiarity and responsiveness to the needs of all parties in the supply chain. As we demonstrated in this transaction, Rosenthal is committed to providing creative and soundly structured finance solutions that meet the specific requirements of today’s rapidly changing world.”
Rosenthal & Rosenthal is an independent factoring, asset-based lending and purchase order financing firm in the United States.
