Rosenthal & Rosenthal completed a $4 million purchase order finance facility to support the production financing requirements of a New Jersey-based outerwear company.
Rosenthal’s facility allowed the client to address its seasonal pre-sold inventory financing requirements for the branded and private label outerwear products it sells to a large big box retailer and other customers. The facility will also ensure that the company’s product flow from Asian suppliers will continue uninterrupted during the busy period.
The supply chain financing requirements of the transaction involved the purchase of product from several international suppliers via letters of credit and cash funding for freight, duty and other logistics costs. Rosenthal’s advance rate was 100% on the landed cost of the presold inventory.
“Seasonal apparel companies can face significant cash flow strain because they need to source, produce and ship large quantities of product within a short window of time,” said Rosenthal Division Head Paul Schuldiner. “P/O financing is a much-needed funding tool that ensures that suppliers are paid on time and that crucial delivery dates to end retail customers are met.”
