Rosenthal Trade Capital, a division of Rosenthal & Rosenthal, completed a purchase order finance facility to support the financing requirements of a global toy and sporting goods company.

An Australian company, referred to Rosenthal by a national bank, needed additional assistance with its financing requirements as it expanded its international distribution. A large retailer, who had been a customer of the company, changed its sourcing strategy and was now going to require the company to import and distribute product from the U.S., as opposed to Australia and Asia. This change, coupled with an increasing volume of sales orders, began to put a strain on cash flow and forced the company to establish a permanent U.S. presence.

In response, Rosenthal provided a $2.5 million purchase order finance facility to assist with the funding of product to fulfill seasonal orders from the large big box 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 was a challenging transaction because it required us to successfully underwrite, structure, document and fund across multiple entities,” said Rosenthal Trade Capital Division Head Paul Schuldiner. “The continued expansion of cross-border trade demands innovation and responsiveness from lenders to meet the needs of global companies. We were thrilled to be selected as the preferred lender by our referral partner bank to provide a creative, yet soundly structured finance solution, which ultimately benefited all parties.”