Rosenthal & Rosenthal completed a joint $2 million factoring and $750,000 inventory production finance deal for a Georgia-based importer and distributor of recreational sporting products.
A consulting firm known to Rosenthal was working with the client in the outdoor recreational sporting products industry. The company primarily sells to a network of dealers as well as through its own e-commerce platform. Due in large part to the uptick in demand in outdoor recreation gear as a result of the COVID-19 pandemic, the company faced double digit sales growth. Its growth was attributed to increased sales from dealers and the company’s website, as well as a sales program from a big box sporting goods retailer for a seasonal product line. Given a large seasonal inventory build and an expanding customer base, the consulting firm suggested that the client engage a factoring and purchase order financing company to assist with its increasing financing needs.
The consulting firm recommended Rosenthal, which provided a $750,000 purchase order finance facility, allowing the client to obtain goods from its overseas suppliers by funding cash against documents as well as funding freight and duty. The company had reached its limit on open account terms with its supplier, which threatened to expose the company to risks in its supply chain if a mutually agreeable solution with their supplier could not be achieved. Given that potential risk, Rosenthal’s PO financing facility offered the client a more soundly structured solution. Along with an additional $2 million factoring facility from Rosenthal, the client now has the working capital it needs to pursue growth opportunities,
“Rosenthal’s track record of success working with growth companies to address challenges in their international supply chains is one of the main reasons why we are often called upon by our partners as a preferred resource,” Paul Schuldiner, PO finance division head for Rosenthal & Rosenthal, said.
“Rosenthal was a great fit for this client because we were able to offer a combination of PO funding and factoring as part of a single financing solution,” Leigh Lones, senior vice president and Southeast regional sales manager at Rosenthal & Rosenthal, said. “Many clients come to us because we’re able to deliver a variety of working capital solutions that work seamlessly together and are designed to address a company’s specific needs.”