Rosenthal & Rosenthal completed a $2 million purchase order finance facility for a Florida-based manufacturer and importer of cooling equipment serving the industrial and government sectors.
A third-party factoring company enlisted Rosenthal to address a client’s entire supply chain financing needs. Rosenthal established its facility to work with an existing factoring facility, allowing the client to fund the production of product that was backed by sales orders and program commitments from large industrial customers.
The complex production financing requirements of the transaction involved the structure of purchases from several component suppliers as well as funding of the completion of the products by a multi-national contract manufacturer. Letters of credit and cash funding for freight, duty and logistics costs provided the financing. Rosenthal’s advance rate was 100% on the cost of the presold inventory.
“It was gratifying to be asked to participate in this transaction by the company’s existing factor and we were thrilled to assist in structuring a production financing solution for this growing industrial distribution company,” said Rosenthal Division Head Paul Schuldiner. “While P/O financing is historically linked to companies selling into a retail channel of distribution, this transaction is an excellent example of how industrial product manufacturing companies can take advantage of larger sales opportunities with properly structured financing.”
