Rosenthal & Rosenthal completed five transactions last month for several of its clients across the Southeast. The transactions included three factoring deals, one asset-based lending deal and one purchase order financing transaction.
For the first factoring deal, a family-owned and operated furniture and home goods business was searching for a new factoring relationship that would offer a more hands-on approach and personalized service.
“Our talented team in North Carolina was able to step in quickly to take over the client’s customer relationships and the client appreciates that their credit manager is only a phone call away,” Leigh Lones, senior vice president and Southeast regional sales manager at Rosenthal & Rosenthal, said.
The second factoring deal came about because a manufacturer based in the Southeast was approached by a West Coast furniture importer that wanted to establish an East Coast presence and expand its manufacturing capabilities. The importer wanted to utilize factoring for the newly acquired company to manage customer risk exposure and help determine new customer markets that would be available as part of the acquisition.
“This complex deal involved a first-time factoring facility for the importer and the timeline to close was extremely tight,” Brian Resutek, senior vice president at Rosenthal & Rosenthal, said. “It was imperative that all of the financing and factoring facilities were arranged in advance. Rosenthal was able to work quickly with the client to ensure the deal closed on time.”
The final factoring deal and the purchase order financing transaction were completed with a Georgia-based importer and distributor of outdoor recreational products that experienced sales growth. Facing an uptick in sales orders from its existing dealers and e-commerce channels, the company also secured a sales program with a big box sporting goods retailer to supply a seasonal product line. The company’s consulting firm recommended it consider factoring and purchase order financing to assist with increasing financing needs to keep up with demand. Rosenthal & Rosenthal structured a working capital solution that included a $1.5 million factoring facility and a $750,000 purchase order financing facility. The increase in working capital helped the company obtain goods from overseas suppliers and helped to mitigate risks in its supply chain.
“Rosenthal’s track record of success in working with growth companies to address challenges in their international supply chains is why we are frequently called upon as a preferred resource,” Paul Schuldiner, purchase order finance division head at Rosenthal & Rosenthal, said.
The asset-based lending deal came about because a Midwest-based food distributor serving restaurants on the East Coast was facing limitations on its working capital facility from its existing lender — a community bank — given the shrinking credit market. The company’s advisor introduced the company’s executives to Rosenthal & Rosenthal’s Atlanta office. Rosenthal & Rosenthal leveraged the company’s inventory to support a $7.5 million revolving credit facility to provide more working capital than the company’s bank offered.
“By taking the time to learn about and understand the companies we lend to, we’re able to earn their trust,” Al Foster, vice president and business development officer at Rosenthal & Rosenthal, said. “We’re family-owned and independent, which means we aren’t limited by red tape and regulations that often prevent other institutions from offering clients the funding they actually need.”