Rosenthal Closes Pair of PO Financing Transactions Totaling $3.5MM

Rosenthal & Rosenthal completed two purchase order financing transactions totaling $3.5 million.

The first transaction was with a women’s accessories and textiles company based in New York that was seeking a new financing arrangement to support the purchase of pre-sold inventory purchases to multiple retail customers. Rosenthal was introduced to the client when its current lender was unable to provide the financing the company needed to support its growth. Rosenthal provided a $1 million purchase order financing facility, utilizing both cash against document payments and letters of credit to support the pre-sold inventory purchases from multiple overseas suppliers.

The second transaction was with a New York-based digital canvas and software technology company that was seeking a new financing facility after partnering with a new supplier for purchases of large shipments to a major creditworthy customer. The company was in the process of refinancing its existing term loan and its third-party bank factor brought in Rosenthal to provide a purchase order financing facility that would work in tandem with the company’s existing funding. Rosenthal was able to step in and enter into a tri-party intercreditor agreement with the new term loan lender and bank factor to provide a $2.5 million purchase order financing facility with a $10 million volume commitment. As with many new supplier relationships, the supplier was initial looking for large cash deposits from the client. Rosenthal was able to utilize letters of credit in place of cash deposits to fulfill the large orders.

“In both cases, Rosenthal’s ability to move quickly to get these clients the working capital they needed to meet demand and fulfill significant sales opportunities set us apart,” Megan Flaherty, senior vice president of Rosenthal’s purchase order financing division, said. “Our flexibility, our expertise in purchase order financing and our ability to work seamlessly with third-party lenders allows us to create soundly structured financing solutions for all parties that allow clients to scale their relationships with suppliers and take advantage of growth opportunities.”