Daily News: May 23, 2019

Rosenthal Provides $500K P/O Facility for Children’s Footwear Importer


Rosenthal & Rosenthal completed a $500,000 inventory production finance deal for a children’s footwear importer.

An entrepreneurial New York-based importer of children’s footwear was growing rapidly after it received an influx of orders for its European licensed branded product line. With impending tariffs driving up prices for footwear sourced from China, the company was seeking to source high-quality branded product from Europe at competitive pricing. However, as the company was a new and unfamiliar customer to the European suppliers, open terms were not feasible and on-time payments for the product were required.

Having previously partnered with Rosenthal, the company’s third-party factor brought in Rosenthal to provide a $500,000 purchase order finance facility so the client could obtain goods from multiple overseas suppliers. Rosenthal funded the required inventory via cash against documents as well as all freight, duty and logistics costs. With an inter-creditor agreement already in place with the third-party factor, Rosenthal was able to quickly step in as a preferred strategic partner, and the client was able to avoid both additional overadvances and raising equity, which would have diluted their ownership in the business.

“Rosenthal has more than 80 years of experience helping entrepreneurs capitalize on growth opportunities,” said Rosenthal PO Finance Division Head Paul Schuldiner. “Rosenthal’s purchase order and production finance division can assist larger, more mature companies as well as a smaller, entrepreneurial business. We are grateful to be working again with this third-party factor and look forward to assisting similar companies that can benefit from purchase order financing or work in process production financing.”