Rosenthal Capital Group (RCG) completed three recourse factoring deals across a range of industries totaling $12 million.
A fragrance industry veteran was looking to launch a new fragrance line into national beauty retailers. Because of his track record of success in the sector, suppliers agreed to produce and ship product under flexible terms, but the company was still seeking a working capital solution to pay the suppliers. RCG stepped in to provide the working capital needed to cover supplier payments as shipments were taking place so the company could start production against replenishment orders. RCG closed the transaction quickly and in seven days the company had a $4.5 million recourse factoring facility in place.
A manufacturer of polyester fibers, yarns and other synthetic materials was seeking a recourse factoring solution to support the establishment of a newly formed U.S. subsidiary. When the parent company’s European banks restricted additional loans to the subsidiary, the company began exploring alternative financing options in the U.S. RCG worked closely with the company during the set-up phase of the domestic business as they hired employees and strategically placed warehouses to service their key customer base. RCG ultimately implemented a $4 million recourse factoring facility to support the U.S. subsidiaries of the company’s current European customers. RCG’s funding covered operating expenses and allowed for repayment of A/P owed to the parent company.
A newly formed apparel company was seeking an alternative financing solution to support the relaunch of a well-known brand via e-commerce platforms. The business initially launched with a single customer and 2 purchase orders totaling more than $10 million, with delivery dates from May to December. The client was able to support the vendor deposits on their own but wanted a factoring facility in place for day-to-day working capital needs. RCG ultimately offered a $3.5 million recourse factoring facility that included an intercreditor agreement with a regional bank to provide the funding to acquire the brand.
“While each of these deals was unique, all three involved start-ups with only a few active customers and the need for funding to pay suppliers,” said Leigh Lones, Head of Recourse Factoring at RCG. “RCG’s flexibility, transparency and speed are the perfect components for customized and efficient transactions that position companies to take advantage of significant growth and expansion opportunities.”