Rosenthal & Rosenthal completed a multi-million dollar factoring deal with a California-based cosmetics business that shifted its production to aid in the fight against COVID-19.
In the early stages of the pandemic, the owners of a startup cosmetics company saw a void in the marketplace for hand sanitizer that was in short supply. Recognizing a growth opportunity, the company reimagined its product offering and pivoted its existing production to produce hand sanitizer.
With nationwide shortages of PPE and other protective products on the rise as the pandemic quickly spread, the company experienced a surge of new customers. Many of the company’s new customers, who were initially paying in advance, requested terms. In need of credit coverage and cash advances to maintain a consistent flow of product, the company’s accountant referred it to Rosenthal.
Rosenthal’s West Coast team supported the company with a factoring solution. Rosenthal closed the transaction in two weeks because the owners were well known in their community and known to Rosenthal. The business had some unique requirements, but Rosenthal worked with the owners’ established processes to help meet their specific needs. With cash advances to support growing production needs and credit coverage to protect an increasing number of new customers, the company kept its business moving forward and delivered the new hand sanitizer in a timely fashion.
“In the early phase of the pandemic, we saw many companies thinking beyond their traditional product offerings, not only to do their part in the fight against COVID-19 but also to take advantage of new opportunities that arose in the marketplace,” Maria Contino, SVP and Western region sales manager at Rosenthal, said. “Our deep relationships with the retailers and our ability to act quickly to finance their immediate needs made Rosenthal the perfect partner to help this company take advantage of new growth opportunities in the current environment.”
