As part of its continued expansion in the Southeast, Rosenthal & Rosenthal completed a $500,000 purchase order finance facility to support the production financing requirements of a Virginia-based minority-owned government contractor
A third-party factoring company specializing in serving government contractors enlisted Rosenthal as a strategic partner to work in tandem to provide a complete supply chain finance solution for its customer. Rosenthal established the facility to fund the production of satellite communications equipment, backed by contracts from large prime contractors to the U.S. government.
The production financing requirements of the transaction involved the funding of purchases from an overseas supplier using letters of credit and cash funding against documents. Rosenthal’s advance rate was 100% on the cost of the presold inventory.
“We were pleased to have been asked to participate in this transaction by the company’s existing factor and the client was highly satisfied that we were able to finalize an inter-creditor agreement within 24 hours of being introduced to the opportunity,” said Rosenthal Division Head Paul Schuldiner. “When timing is critical, P/O financing is an excellent alternative to conventional financing.”
