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Rosenthal Provides Joint $3.2M Factoring and PO Financing Facilities to Outdoor Goods, Apparel Company

March 07, 2022, 07:32 AM
Filed Under: Apparel

Rosenthal & Rosenthal completed a recent $3.2 million factoring facility with purchase order financing to support an outdoor and sporting apparel company.
The company has been in business for 30 years and experienced explosive growth during the pandemic, in line with what similar brands across the sporting goods industry experienced. 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, they required additional funding through factoring and purchase ordering financing.
Partnering with the local bank, Rosenthal stepped in to provide a $2 million factoring facility and $1.2 million in purchase order financing to support the company’s growth. Through an intercreditor agreement, Rosenthal was able to work in tandem with the existing lender to carve out a specific retail customer where Rosenthal would take 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,” said Leigh Lones, SVP and Southeast Regional Sales Manager at Rosenthal. “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,” said Megan Flaherty, SVP and Underwriting Manager in Rosenthal’s Purchase Order Financing Division. “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.”  

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