Rosenthal Completes $3.2MM Factoring and PO Facility for Outdoor Goods Company

Rosenthal & Rosenthal provided a $2 million factoring facility and $1.2 million in purchase order financing to an outdoor and sporting apparel company.

The company has been in business for 30 years and has experienced growth during the COVID-19 pandemic. The client’s existing financing with a local bank had been adequate up until the pandemic, but once the company began receiving multi-million-dollar purchase orders from larger retailers, it required additional funding through factoring and purchase ordering financing. 

Partnering with the local bank, Rosenthal provided the $2 million factoring facility and $1.2 million in purchase order financing to support the company’s growth. Through an intercreditor agreement, Rosenthal worked in tandem with the existing lender to carve out a specific retail customer, with Rosenthal taking a first position in inventory associated with certain purchase orders and all accounts receivables related to the client’s largest customer. 

“This transaction is a perfect example of Rosenthal’s ability to tailor a funding solution that addresses the unique and evolving needs of our clients,” Leigh Lones, senior vice president and Southeast regional sales manager at Rosenthal & Rosenthal, said. “We were very fortunate to have a creative and flexible partner in the client’s existing bank lender and, together, we are now well positioned to grow with the client as they expand their business and take on more orders from their top customers.”

“The purchase order financing component was key to this transaction,” Megan Flaherty, senior vice president and underwriting manager in Rosenthal’s purchase order financing division, said. “By providing 100% advance rate on the client’s inventory through documents against payment, as well as funding logistics costs, we’re pleased we were able to ensure that the client’s supply chain continued without disruption.”