Rosenthal & Rosenthal completed two recent transactions in the beauty and apparel sectors, totaling $5.5 million.
A fast-growing direct-to-consumer beauty and hair care brand based in Ohio was experiencing rising seasonal and holiday demand. To support these and other growth opportunities, the company was seeking an alternative financing solution to the e-commerce financing platform they were currently utilizing. The brand’s private equity partner introduced them to Rosenthal and the firm’s Pipeline division, which specializes in financing solutions for direct-to-consumer and e-commerce businesses. Rosenthal stepped in to provide a $2 million inventory financing revolver, with a more reasonable cost structure that offered the company an opportunity to achieve profitability.
“This particular scenario is a perfect example of how Rosenthal’s flexible inventory financing solutions are tailor-made to address our client’s specific needs,” said Maria Contino, EVP and Western Regional Sales Manager at Rosenthal. “Our financing pairs very well with long-term venture debt or equity capital in ways that support a client’s rapid growth, increasing the company's cash flow and runway before they have to possibly raise capital again. We are thrilled we were able to work in tandem with the client’s private equity partner to ensure the company had the liquidity it needed to pursue these opportunities.”
An existing Rosenthal asset based lending client, a California-based high-performing branded apparel company, was seeking additional working capital to support a significant sales opportunity. The company received a large order from a big box retailer that was above their borrowing availability. Rosenthal provided a $3.5 million purchase order financing loan for $6 million in volume committed, which allowed the client to fulfill the order.
“We were already familiar with this client and their business, which allowed us to move quickly and help the company secure the additional working capital they needed. Without it, they might not have been able to take advantage of this exciting sales opportunity,” said Megan Flaherty, SVP and Underwriting Manager for Purchase Order Financing at Rosenthal. “Rosenthal is an effective partner in these types of transactions because our purchase order financing can work seamlessly alongside existing factoring and asset based loan facilities, including third-party facilities.”