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Rosenthal Upsizes Inventory Purchase Commitment to $60MM for CA-based Solar Products Distributor

December 14, 2021, 07:40 AM
Filed Under: Distribution

Rosenthal & Rosenthal upsized its recent inventory purchase commitment to support the production financing requirements of a California-based importer and distributor of solar panels, increasing the initial $30 million commitment to $60 million.
The initial $30 million inventory purchase commitment in August 2021 allowed the company to fulfill new and growing sales opportunities without pursuing an equity raise alternative which would have diluted ownership for the existing management team and shareholders. Cash against document payments were used to fund the inventory cost and were paid to the company’s overseas supplier. Cash funding was also provided for fulfillment and logistics costs. The collaborative financing solution created additional factoring of the accounts receivable for the third-party factoring company, who also doubled the size of their factoring facility. Moreover, the additional liquidity was over and above the repayment of the purchase order financing provided by Rosenthal, accelerating the cash flow cycle of the overall transaction.
With supply chain challenges, port disruptions and Chinese New Year slowdowns, Rosenthal moved quickly to increase the capacity for our client to ensure there would be minimal disruption to their logistics and timely payment to overseas suppliers.
“Given our role providing the initial purchase order financing facility, we were able to seamlessly increase our funding commitment to keep pace with our client’s substantial incremental growth, without interruption,” said Rosenthal Division Head Paul Schuldiner. “This was a unique scenario, and we are so pleased that we were able to work quickly to provide the additional liquidity the client needed to take advantage of major infrastructure sales opportunities within the solar products industry.”

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