Daily News: November 29, 2017

Rosenthal Provides PO Finance Facility for Food Import Company

Rosenthal & Rosenthal completed a purchase order finance facility to support the pre-sold inventory financing requirements of an ice cream import and distribution company.

The New Jersey-based importer and exclusive North American distributor of European manufactured ice cream was approached by a large U.S.-based ice cream and beverage company to develop a higher-end private label program for its national grocery distribution business.

After initial successful test orders, Rosenthal’s client received a large sales order that would fully launch the products to its customer’s grocery retail chain.

Following due diligence on the overseas supplier, manufacturing quality control procedures and product import logistics requirements, Rosenthal structured and funded a $2 million PO financing commitment. The deal involved funding cash against documents to cover 100% of the cost of the required inventory in transit, as well as logistics costs.

“Rosenthal has continued to expand its presence in the food and beverage space to serve the increasing number of entrepreneurs in the industry who are seeking innovative growth financing solutions,” said Rosenthal Division Head Paul Schuldiner. “For this particular company, PO financing was an excellent alternative to raising additional equity.”