Rosenthal & Rosenthal completed a $2 million purchase order finance deal for a menswear apparel licensee with multiple brands.
The facility assisted with the production of character license products required to fulfill Fall 2018 orders from a major retailer. The retailer was granted an exclusive on the products for 2018 and provided letters of credit to Rosenthal’s client to secure the purchase of the products and exclusivity rights.
The letters of credit issued by the retailer had extended payment terms that only took effect once the goods landed in the U.S., presenting a challenging transaction financing hurdle. The supply chain financing requirements required Rosenthal to issue separate letters of credit to one main international supplier who would be paid upon shipment of the goods from Asia. Rosenthal implemented a “back-to-back” letter of credit solution, ultimately financing 100% of the cost of the goods payable to the international supplier.
“We were pleased to assist this growing company that has worked diligently to obtain a portfolio of major licenses,” said Rosenthal Division Head Paul Schuldiner. “The Rosenthal PO Finance team has many years of experience successfully assisting licensees across a wide variety of consumer products. Our knowledge of structuring international trade transactions to enable sourcing and crucial on-time delivery of product in a safe and secure manner enabled our client to take advantage of this exceptional opportunity.”
