Daily News: July 12, 2019

Rosenthal Provides $1M P/O Facility for Hair Care Importer

Rosenthal & Rosenthal completed a $1 million inventory production finance deal for an importer of luxury hair care appliances.

An entrepreneurial California-based importer was growing quickly after experiencing an increase in orders from its existing customer base. Cash flow was tight, as the company was simultaneously investing in expanding its product line and attracting new customers, while open terms from its suppliers were maxed out.

Rosenthal’s $1 million purchase order finance facility allowed the client to obtain goods from multiple overseas suppliers by funding the required inventory via cash against documents as well as funding all freight, duty and logistics costs. While raising equity was initially considered, the client realized that Rosenthal’s P/O finance solution was an attractive transaction capital alternative that would not dilute ownership of the business.

“Rosenthal looks to assist entrepreneurs in capitalizing on growth opportunities,” said Rosenthal Division Head Paul Schuldiner. “Rosenthal’s purchase order and production finance solutions are valuable alternatives to companies that are raising equity at an unfavorable price.”