Rosenthal Trade Capital, a division of Rosenthal & Rosenthal, completed a purchase order finance facility to support the financing requirements of an apparel company specializing in licensed and private-label sportswear.

The California-based importer and distributor of sportswear was referred to Rosenthal by its factoring company. The company needed further assistance with its larger than usual seasonal financing requirements to fulfill a large sales program with a big box retailer. Due to substantial year-over-year growth with this retailer, the company was outstripping its factoring facility and its open credit from key suppliers, which put a strain on cash flow requirements required to fulfill the influx of orders.

In response, Rosenthal provided a $4 million purchase order finance facility to assist with the funding of product to fulfill seasonal orders from the retailer. The supply chain financing requirements of the transaction involved the purchase of product from multiple international suppliers via documents against payment as well as the funding of fulfillment and logistics costs. Rosenthal’s advance rate was 100% on the cost of the presold inventory.

“This recent facility highlights how purchase order financing continues to be a strong solution when coupled with factoring to solve the incremental supply chain financing requirements of distribution companies,” said Rosenthal Trade Capital Division Head Paul Schuldiner. “By providing an alternative to the company raising more permanent capital to solve seasonal cash flow challenges, we were pleased to be able to provide a transaction capital program, which was a better solution that benefited all parties.”