Rosenthal Capital Group (RCG), a private commercial finance firm in the United States, completed a $1.5 million purchase order financing transaction for a women’s apparel company based in California.
The woman-owned business had an existing factoring facility but required additional financing to open letters of credit to overseas suppliers for large retailer orders. RCG was able to provide a $1.5 million purchase order financing line with $3 million in volume committed. The purchase order financing will utilize letters of credit to overseas suppliers and work alongside the existing factoring facility as an AR takeout.
“In the case of this particular transaction, purchase order financing has allowed our client to take on larger orders going forward, while also ensuring that key vendors and suppliers are paid in a timely manner through the use of letters of credit,” Megan Slovak, senior vice president and underwriting manager for RCG’s purchase order financing division, said. “Our purchase order financing facilities provide a level of flexibility that businesses typically cannot find with more traditional financing solutions.”
