Rosenthal & Rosenthal completed a $1 million purchase order finance facility to support the production financing requirements of a women’s private label apparel company.
Based in California, the woman-owned and operated company required additional supply chain financing when it received larger than expected orders from several major catalog retailers. The growth opportunity was poised to increase sales by more than 50%, year over year, provided that adequate purchase order financing could be implemented. Purchase order financing was necessary as it was not possible for the company to obtain additional open credit from overseas suppliers.
Rosenthal’s purchase order finance facility involved the purchase of product from the company’s overseas suppliers, with funding through letters of credit, as well as funding of all fulfillment and logistics costs. Rosenthal’s advance rate was 100% on the cost of the presold inventory.
“It is always exciting for the Rosenthal PO finance team to be a part of assisting entrepreneurial businesses so they can capitalize on significant growth opportunities,” said Rosenthal Division Head Paul Schuldiner. “This transaction is a great example of how PO financing can solve the cash flow issues so that all parties in the supply chain can benefit, without the owners having to sacrifice their equity stake by taking on outside permanent investment.”