Rosenthal & Rosenthal completed a $5 million joint factoring, inventory funding and purchase order financing facility to support the growth capital needs of a Georgia-based manufacturer and distributor of office furniture and products.
Founded in 1991, the family-owned business began receiving sales orders in early 2021 from large, established customers, including technology companies, universities, transportation hubs and municipalities. Each in excess of $1 million, the orders were for a series of new products the company had begun manufacturing in response to the COVID-19 pandemic, including temperature screening stands and devices, desk shields, partitions and air purifiers.
With a large customer base and limited internal resources, the company required additional liquidity to acquire more inventory and ensure it could manufacture and deliver the final products to customers on time. When it became clear that the client required a more robust working capital solution, one of the company’s advisors introduced it to Rosenthal. Rosenthal ultimately provided a total facility of $5 million, with $4 million allocated to receivables and inventory and $1 million toward purchase order funding.
“Rosenthal is pleased to partner with this well-established company and provide the support they need to pursue their growth capital needs, grow new product lines and attract new customers,” Leigh Lones, senior vice president and Southeast region sales manager for Rosenthal & Rosenthal, said. “Our ability to provide a creative mix of financing solutions was a win-win for the client. With more liquidity, automatic credit approval lines, competitive pricing and a dedicated partner, the client can focus on growing their business strategically.”
