Rosenthal & Rosenthal completed a $6 million asset-based lending deal for a family-owned pawn business and jewelry, metal and accessories retailer.
Rosenthal’s West Coast team led the deal, marking its second financing deal with a pawn business. Based in California, the company was in search of an alternative lender when its existing bank facilities were no longer sufficient or able to support its growth strategy. Rosenthal was recommended to the client by several of the company’s industry peers.
Rosenthal consolidated the company’s bank loans into a single asset-based loan facility. The $6 million facility provided the company with near-term working capital as well as a means to tackle longer-term growth plans.
“With a deep understanding of the pawn industry, we recognize the unique challenges those businesses face, especially in the current COVID environment,” Ying Yang, vice president of business development in Rosenthal’s West Coast office, said. “Pawn businesses are drawn to us because we’re able to adapt to their borrowing needs and provide more flexible financing solutions compared with some of the more restrictive bank loan structures that many companies currently have in place.”
