Rosenthal & Rosenthal completed a $3 million inventory production finance deal for an iconic importer of women’s footwear.
A Florida-based company with operations in California and New York, was purchased by an investor who sought to revitalize the brand and expand its e-commerce platform and brick-and-mortar retail sales program. While looking to raise additional permanent capital, the company required seasonal financing to support a large order book related to the launch of a popular new line. The company’s overseas sourcing was already diversified, but several suppliers were unable to extend additional open credit terms. Additionally, tariffs on China-sourced goods were putting further strain on the company’s finances.
Rosenthal’s $3 million purchase order finance facility allowed the client to obtain goods from multiple overseas suppliers both by issuing letters of credit and cash funding of documents against payment as well as all freight, duty (including tariffs) and logistics costs. With this more soundly structured solution, the company’s overseas suppliers would now have the credit enhancement and payment assurance they required to ship the goods. The client’s overall seasonal liquidity also stabilized, allowing the company to refocus its attention on securing additional permanent capital.
“Rosenthal’s PO Finance Division has a proven track record supporting companies through new product launches, while helping them balance seasonal cash flow concerns,” said Rosenthal Division Head Paul Schuldiner. “Rosenthal’s purchase order and production financing is a critical bridge financing tool that allows investors to patiently consider all options for an appropriate long-term capital structure. Our financing solutions are a viable alternative for consumer product companies navigating the current environment, as well as their lenders and suppliers.”