Rosenthal & Rosenthal completed a recent production-based purchase order finance deal with an investment group that is building a portfolio of companies in the outdoor recreation products industry.
As part of the transaction, Rosenthal provided an initial $500,000 production finance facility to assist with the raw material component procurement, assembly and packaging of goods to fulfill a major order from a large retailer. The supply chain financing requirements of this transaction involved the purchase of multiple components from several domestic suppliers, which would then be assembled into finished product by the client.
The funding was a combination of domestic purchase guarantees to create open payment terms from suppliers for raw material purchases and cash funding of direct labor.
The investment group was seeking a solution to finance the growth of its industry portfolio companies that require production-based and/or trade finance purchase order financing programs.
“We were pleased to partner with the investment group to help solve some of the complex supply chain financing challenges that many of their portfolio clients who are domestic manufacturers face,” said Rosenthal Division Head Paul Schuldiner. “We successfully financed the work in process through purchase order financing, which allowed both the manufacturing client to fulfill the large sales order and the investment group to create a new financing platform to serve their growing portfolio of companies.”