Rosenthal & Rosenthal completed two recourse factoring transactions totaling $5 million along with an additional $2 million purchase order financing facility.
The first transaction was a $2 million recourse factoring facility for a New Jersey-based logistics company that wanted to take advantage of a new opportunity to expand into importing metals and other commodities. Having been previously self-funded, the business did not have a current lending relationship to support the new venture. One of Rosenthal’s bank referral sources introduced the firm to the company, which had purchase orders from long-time, well-rated customers already in hand and shipments slated to begin in November and deliveries and invoicing in January. Rosenthal worked quickly to find the right solution so the company could successfully execute the orders. When suppliers required the company to have a working capital facility in place before they would accept the orders and start production, Rosenthal stepped in within days of meeting the company’s owners to provide a $2 million facility that enabled the company to secure the orders and meet customer delivery dates.
The second transaction was a $3 million recourse factoring facility combined with a $2 million purchase order financing facility for a Canadian distributor of cellular equipment for use by first responders that was looking for a total trade finance solution to support its growing business in the U.S. Working with the business’ public parent company, Rosenthal offered a one-stop solution structured to grow with the business, completing a complex transaction in a timely and efficient manner. The allowed the company to pursue its international growth plans.
“Speed, efficiency and flexibility were the key differentiators in both of these transactions,” Leigh Lones, head of recourse factoring at Rosenthal & Rosenthal, said. “Our creativity and nimbleness offers clients the best and most comprehensive financing solutions to fit their specific needs, and our ability to move quickly to address those needs can make all the difference for a rapidly growing business.”
