NEW YORK – Rosenthal Capital Group (RCG), the leading private commercial finance firm in the United States, today announced the completion of two recourse factoring deals in the apparel and beauty sectors totaling $2.5 million.
Both deals are U.S. subsidiaries of foreign parent companies that have been funding the majority of the companies’ growth for several years. Recent growth in the U.S. markets has put stress on the two parent companies and their smaller U.S.-based teams. In both cases, there was an opportunity to pull liquidity from the U.S. business to support growth in new international markets.
A U.S. subsidiary of a Dutch menswear apparel company was looking to generate additional liquidity after experiencing rapid growth. The company had traditionally relied on funding from the parent company and with a very limited U.S.-based staff, that reliance was likely to continue. Seeking alternative financing opportunities, the company was introduced to RCG who provided a $1 million recourse factoring facility to help generate liquidity to aid in expansion efforts and A/R customer management.
Another U.S. subsidiary of a global European-based beauty company was in need of a more comprehensive factoring facility to support the business’ aggressive growth plans. With a small factoring facility already in place in the U.S. that was limited only to advances on a single customer, the company was seeking a full factoring facility that would include all U.S.-based customers as well as a few foreign customers. Already familiar with the company, RCG was able to step in and provide a $1.5 million recourse factoring facility that gave the business much-needed liquidity to grow the U.S. business and added value through accounts receivable management.
“Both of these deals represent Rosenthal Capital Group’s creativity, speed, responsiveness and ability to tailor solutions that meet the specific needs of our clients,” said Leigh Lones, Head of Recourse Factoring at Rosenthal Capital Group. “With foreign owners, existing factoring in place in Europe and no need for customer credit coverage, these transactions were the perfect fit for recourse factoring to help manage accounts receivable and generate maximum liquidity for the businesses.”
