Rosenthal & Rosenthal completed a purchase order finance facility to support the production financing requirements of a promotional products company with operations in North Carolina and Canada.
Rosenthal’s $2 million facility allowed the client to address its overseas production financing requirements for an influx of larger-than-projected sales programs for several Fortune 1000 customers. Rosenthal will also provide the company with a $7 million asset-based lending facility.
The supply chain financing requirements of the transaction allowed for the purchase of product from multiple international suppliers via letters of credit and documents against payment for in-transit goods. Rosenthal’s advance rate was 100% on the cost of the pre-sold inventory, including freight, duty and logistics costs. The purchase order financing facility will be repaid from the financing of the accounts receivable via the asset-based lending facility.
“This transaction was referred to us by a bank that was unable to provide a single comprehensive solution for the company’s overall working capital requirements,” said Rosenthal P/O Finance Division Head Paul Schuldiner. “Rosenthal’s ability to provide a cross border trade finance facility in tandem with an asset-based working capital facility allows the client to achieve its growth objectives, without raising equity or mezzanine financing.”
