Rosenthal & Rosenthal completed a $1 million purchase order finance facility for a UK-based accessories company with operations in New York.
The finance facility allowed the client to address its supply chain financing requirements in connection with the acquisition of an outdoor accessories brand. With larger than projected initial sales orders for the re-launch of its product line, the client required a solution that would ensure it could adequately address the pre-production financing requirements of its overseas suppliers without raising additional equity.
The financing requirements supported the purchase of product from several international suppliers via letters of credit and cash funding for freight, duty and logistics costs.
Rosenthal’s advance rate was 100% on the cost of the presold inventory.
“Our P/O Finance team was thrilled to structure a production financing solution for the company that allowed them to successfully re-launch this iconic brand,” said Rosenthal Division Head Paul Schuldiner. “This transaction is a prime example of how a soundly structured P/O financing solution can be a catalyst for growth, without raising equity capital and unnecessarily diluting ownership.”