Rosenthal & Rosenthal completed a $1.25 million purchase order finance facility to support the production financing requirements of a global apparel company based in California.
When the company was unable to secure over-advances from its existing factor, it sought out a solution to make critical payments to overseas suppliers on time and minimize the effects of potential price increases from Chinese suppliers.
Rosenthal’s facility allowed the client to address its immediate seasonal financing requirements for both resort and early spring purchase orders and ensure that the company’s product flow from Asian suppliers would continue uninterrupted.
The supply chain financing requirements of the transaction involved the purchase of product from multiple international suppliers via documents against payment for in-transit goods as well as letters of credit for new suppliers where credit terms have not yet been sufficiently established. Rosenthal’s advance rate was 100% on the cost of the presold inventory, inclusive of freight, duty and logistics costs.
“The sourcing challenges related to tariffs on apparel production from China are a real concern for U.S. importers,” said Rosenthal Division Head Paul Schuldiner. “This transaction demonstrates our familiarity with and responsiveness to the seasonal cash flow issues of suppliers in Asia, while also helping clients navigate challenging product sourcing environments. Rosenthal’s P/O Financing division is committed to providing creative and soundly structured finance solutions that meet the specific needs of companies importing apparel from China.”
