Rosenthal & Rosenthal announced the completion of a $4 million purchase ordering financing facility to support a U.S.-based global manufacturing company with a multi-faceted government contract.
The company, a global manufacturer and supplier of aerospace and defense gear, wanted to take advantage of larger contracts with the U.S. government. Facing cash flow constraints that made it challenging to pursue new sales opportunities, the client’s third-party lender managing their account receivables referred them to Rosenthal. With a $20 million volume commitment, Rosenthal was able to step in quickly to provide a $4 million purchase order financing facility and an intercreditor agreement that would give the company the extra liquidity it needed to pursue new and larger contracts with the U.S. government. Rosenthal is funding cash against documents, helping to bridge the gap between production and invoicing for the company across various divisions.
“When a client has an opportunity to pursue a sizable government contract like this one, it’s critical that they have access to enough liquidity to execute the deal and deliver on the order,” said Megan Slovak, SVP and Underwriting Manager for Purchase Order Financing at Rosenthal. “Clients are frequently referred to Rosenthal because we’re creative and can move quickly to provide the financing they need, when they need it. We also work seamlessly in tandem with existing lenders to give clients more flexibility, so they never have to pass up a significant growth opportunity or an important contract.”
