Rosenthal & Rosenthal, a private commercial finance firm in the United States, completed an asset-based lending transaction and a factoring transaction totaling $5 million._x000D_
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A handbag and accessories business that had historically been focused in the wholesale channel pivoted and invested in building a robust direct-to-consumer channel through its own website and Amazon. Revenues have scaled rapidly, and the company was looking to fulfill shipments out of Mexico (a section 321 complaint country) to take advantage of duty savings. However, its long-time bank lender was unable to lend against inventory due to internal policies. Rosenthal stepped in to support the brand by providing a $3 million asset-based loan facility, lending against both receivables and the company’s inventory located in Mexico._x000D_
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“For us, it’s all about the operators of the business,” Andrew Barone, senior vice president and director of business development for Rosenthal’s pipeline division, said. “This particular company made it easy to provide an asset-based loan with inventory located in a pristine facility in Mexico, compared to most domestic 3PLs. We hope Rosenthal can be a resource for other brands with inventory in Canada or Mexico who are taking advantage of section 321 law to enhance their bottom-line profits through duty savings.”_x000D_
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The second transaction involved an apparel importer and a former client of Rosenthal’s purchase order financing division. The company established a new venture with commitments secured from numerous retailers and was seeking a factoring solution to support their growth. Already familiar with the business, Rosenthal provided a $2 million factoring facility to assist the business with receivable financing which will support $10 million in revenue.
Forward for Specialty Finance
