Rosenthal & Rosenthal, a private commercial finance firm in the United States, completed three recourse factoring transactions totaling $6.5 million.
A supplier of dairy products both domestically and internationally was in need of a working capital lender after the company struggled to overcome challenges from the COVID pandemic and supply chain disruptions in 2021 and 2022. The owners made the difficult decision to downsize and restructure the business; the company needed a new lender that could provide maximum liquidity while the business focused on completing the sale of a division, realigned the sales model and cleansed the customer base. Rosenthal’s $4.5 million recourse factoring facility included funding against domestic and foreign A/R with no concentration limit restrictions.
A provider of sports imagery and content was seeking a working capital facility to support the buyback of their business from a large public media company. The management team was able to raise sufficient funding to complete the acquisition but lacked liquidity to support daily operations. Rosenthal stepped in quickly to provide a $500,000 recourse factoring facility to cover the company’s working capital requirements. In addition to funding, the company was seeking help managing the A/R, including assistance securing timely payments from customers. The previous owner did not actively work the A/R, which had resulted in most customers paying 30-60 days past the due date. Rosenthal offered a split advance rate to accommodate various types of subscription billing and funding against both domestic and foreign A/R.
A second-generation family owned and operated manufacturing company specializing in prototype and short-run parts for large domestic and international customers was seeking a short-term working capital facility for one year and was interested in factoring only a subset of their customer base. The company did not have a traditional working capital facility, as the owners had historically personally funded any shortfall. Rosenthal agreed to factor the company’s top 15 customers with a $1.5 million facility, with the option to add more customers if needed. As the company was new to working capital lending, this flexibility gave the company and their customers time to adjust to Rosenthal’s reporting requirements and control of payments.
“Each of these transactions demonstrates Rosenthal’s out-of-the-box approach to all of our recourse factoring relationships,” Leigh Lones, head of recourse factoring at Rosenthal, said. “Clients frequently come to us with a whole host of challenges and individual circumstances that often require unique solutions tailored to their specific needs. These three deals are great examples of that and of Rosenthal’s flexibility, creativity and ability to find and deliver solutions quickly.”
