Featured in Gifts and Dec: Three Signs Your Lending Relationship May Not Be Working For You

Featured in Gifts and Dec: Three Signs Your Lending Relationship May Not Be Working For You

Three Signs Your Lending Relationship May Not Be Working For You

By Cassie Rosenthal, Senior Vice President, Rosenthal & Rosenthal

When it comes to your company, nothing is more important than its financial health and stability. It’s critical to have the right financial partner at your side as you aim to grow your business or are forced to weather challenges that may threaten your bottom line. But how do you know if your lending relationship is one that will truly serve your business interests for the long term? Here are some important questions you should ask yourself:

  • Is your relationship with your bank flexible enough to allow you to take advantage of growth opportunities when you see them?
  • Is your lender tolerant of unforeseen obstacles or shifts in your business model?
  • Will your bank line grow as you scale your business or will an unforeseen large order max out your line of credit?
  • When you experience disruptions to your cash flow, are you faced with sky-high fees and penalties – or worse, does your bank threaten to pull your funding altogether?
  • Does your lender understand your business?
  • Do you ever feel like just another client in a crowded portfolio?

If any of these scenarios sounds familiar, then you must ask yourself if your lending relationship is really right for you and your business.

Three red flags it’s time to explore a new lending relationship:

#1 The Dead Giveaway

Your lender claims they understand the natural ebb and flow of your business, but when it comes to the issues that consistently crop up for you, it’s clear they don’t appreciate how those challenges can affect the overall financial health of your company. Do they understand how seasonality can affect your cash flow or how the unpredictability of a large, unexpected order can put a strain on your company’s finances, not to mention your own sanity? Many gift and home businesses struggle with complex supply chains that require deposits or other cash outlays not necessarily factored into their financial plans. To overcome these challenges, you should have a financial partner who knows what you need, even before you know you need it.

#2 Regulatory Pushback is Not Your Friend

Traditional banks rely on formulas and balance sheets, but your business doesn’t always fit perfectly into a tidy box. The life of an entrepreneur – and your business – will have its ups and downs. You should have a financial partner that is nimble, with the ability to adapt quickly to find solutions that meet your needs. Large public banks and lenders are often slow to react – and lend – when you need over advances for the seasonal lows and for the build-up of inventory for moments like Christmas or Chinese New Year. Independent, privately held lenders that are not restricted by stringent banking regulations or lengthy committee reviews are often more flexible and able to help you ride out rough patches without a hit to your bottom line.

#3 Your Banker is a Nameless Face

As an entrepreneur, you know that everything in business is personal. It’s built on relationships, hard work, determination – and in many cases – a dream. You would never trust your child with a stranger, so why would you hand over your entire business to just anyone? An effective financial partner should always look out for your best interests, flag bad debt so you can avoid it and help you navigate complex financial situations. They should be a true partner in every sense of the word – a sounding board for new ideas and a reliable cohort to support your business goals, whatever they may be. Anything less than that and you’re selling yourself – and your business – short.

To learn more about how your business can benefit from alternative lending solutions like factoring, asset based lending and purchase order financing, please visit www.rosenthalinc.com or contact Cassie Rosenthal at crosenthal@rosenthalinc.com or 212-356-1475.

ROSENTHAL PROVIDES UNIQUE FINANCING TO FACILITATE RESTRUCTURING AND SUCCESSFUL SALE OF CASH-CONSTRAINED BUSINESS

ROSENTHAL PROVIDES UNIQUE FINANCING TO FACILITATE RESTRUCTURING AND SUCCESSFUL SALE OF CASH-CONSTRAINED BUSINESS

In Partnership with Third-Party Turnaround Consultant, Legal Advisor and Private Equity Firm, Rosenthal Develops Strategic Financing Alternatives to Maximize Client’s Chapter 11 Process and Sale

 

(NEW YORK)June 6, 2017Rosenthal & Rosenthal, Inc., the leading factoring, asset based lending and purchase order financing firm in the U.S., today announced its role in the recent completion of a complex restructuring and sale of Prestige Industries, a leading provider of commercial laundry and valet services to the hospitality industry in the greater New York City region.

An affiliate of the private equity firm Sunrise Capital Partners completed the acquisition of Prestige Industries’ operations through a Chapter 11 auction process approved on May 12, 2017. Both a financial and strategic investor in the business, Sunrise’s seasoned team of investment professionals is helping to lead the turnaround efforts.

As a result of staffing constraints, employee turnover, a highly leveraged capital structure and operational losses around their facilities construction, Prestige had been experiencing cash-flow stress that negatively impacted the company’s liquidity. Earlier this year, turnaround consultants at Traxi LCC were brought in to work with Prestige to stabilize its financing and operations, which ultimately resulted in a strategic Chapter 11 bankruptcy filing.

As part of the restructuring, Rosenthal worked with Traxi and a team of lawyers from Otterbourg P.C., to develop an innovative financing arrangement by leveraging the company’s machinery and equipment and other fixed assets as collateral to address cash flow issues and help stabilize the business. This financing opportunity allowed the company to pursue either a 363 sale in bankruptcy or a capital restructuring. The arrangement not only provided Prestige with the funding it needed to relieve its cash flow constraints, but also the flexibility to pursue alternative reorganization solutions.  

Rosenthal’s strategic approach allowed Prestige to refinance its pre-bankruptcy working capital lender, over the opposition of a junior secured lender, which positioned the company to maximize its Chapter 11 sale and restructuring prospects. Moreover, when the sale was completed, Rosenthal was able to pay off the initial asset based DIP loan with its new loan to Sunrise. Prestige’s business has now successfully emerged from bankruptcy through the sale to an affiliate of Sunrise Capital Partners.

“This was a complicated deal that showcased Rosenthal’s nimbleness and our ability to think strategically to structure a deal that was clearly in the best long-term interests of both of our clients,” said Rob Miller, Executive Vice President and Head of Asset Based Lending at Rosenthal. “We’re thrilled that we were able to help maximize the value of Prestige’s business to effectively transition the operations out of bankruptcy and back to a going concern business that is well positioned to succeed.”

“Thanks to Rosenthal’s vision and expertise, we were able to consummate the transaction with a key focus on serving Prestige's customers and supporting its employees,” said Nevil Shah, Principal of Sunrise Capital Partners.

For more information about this transaction, please contact Rob Miller at 212-356-0960 or rmiller@rosenthalinc.com.

ROSENTHAL HIRES MEGAN FLAHERTY, AS PURCHASE ORDER FINANCING DIVISION CONTINUES TO EXPAND

ROSENTHAL HIRES MEGAN FLAHERTY, AS PURCHASE ORDER FINANCING DIVISION CONTINUES TO EXPAND

(NEW YORK)June 5, 2017Rosenthal & Rosenthal, Inc., a leading private commercial finance company specializing in factoring, asset based lending and purchase order financing, today announced the appointment of Megan Flaherty as Assistant Vice President and Account Executive for Rosenthal Trade Capital. In her role, Flaherty will be responsible for account management and underwriting for the firm’s Purchase Order Financing division. The appointment was effective June 1, 2017.

 

For the past five years, Flaherty served as Vice President for Loan and Credit Operations at Salus Capital Partners, where she funded borrowers and managed collateral and related compliance reporting. She brings significant consumer product and retail industry experience to Rosenthal and is a timely addition to the team, given the firm’s robust new business activity.

 

“Rosenthal Trade Capital has expanded considerably since we first launched the division late last summer, and we’ve been fortunate to experience accelerated growth,” said Paul Schuldiner, Rosenthal Trade Capital Division Head. “I have no doubt that Megan’s demonstrated knowledge of the unique needs of consumer product companies and the overall credit environment will allow us to further broaden our client base.” 

 

 

ABOUT ROSENTHAL & ROSENTHAL

 

Rosenthal & Rosenthal (www.rosenthalinc.com) is the leading factoring, asset based lending and purchase order financing firm in the United States. Founded in 1938 by Imre J. Rosenthal, the firm is now led by the second and third generations of the Rosenthal family. As a privately held company, Rosenthal is committed to providing personalized service and flexible lending to clients across a broad range of industries.

Sydnee Breuer featured in the California Apparel News

Sydnee Breuer featured in the California Apparel News

How Are Finance People Handling the Weak Retail Market and Have They Adjusted Their Financing Rules for Clothing Manufacturers?

By Deborah Belgum

Many retailers are going through challenging times for sure, but we have not significantly changed our evaluation of them.

What many may perceive as changing is actually just a matter of more retailers struggling financially. This makes us request and look at more detailed information regarding their results and their projections.

For example, the same poor results posted for any given retailer in 2016/2017 would garner the same scrutiny if those results were posted in the boom years of retail.

Negative results are just that; there are just more retailers posting those poor results now than in the 1990s. Keep in mind that part of the equation on whether to finance the accounts receivables and/or additional support is the financial strength of our client and the people involved, taking into account the overall relationship.
— Sydnee Breuer, Executive Vice President, Rosenthal & Rosenthal

ROSENTHAL HIRES SEASONED BUSINESS DEVELOPMENT EXECUTIVE AS VICE PRESIDENT FOR WEST COAST

ROSENTHAL HIRES SEASONED BUSINESS DEVELOPMENT EXECUTIVE AS VICE PRESIDENT FOR WEST COAST

 
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(NEW YORK)March 20, 2017Rosenthal & Rosenthal, Inc., a leading private commercial finance company specializing in factoring, asset based lending and purchase order financing, today announced the appointment of Ying Yang as Vice President. In her role, Ying will be responsible for business development across the firm’s divisions, with a particular focus on growing the West Coast client base. The appointment is effective March 13, 2017.

 

Ying is an experienced commercial finance executive, having spent over 13 years at CIT Commercial Services sourcing and closing factoring and asset based lending transactions.

 

“We’re thrilled to welcome Ying to the Rosenthal team and are fortunate to add yet another strong player to our already talented bench,” said Peter Rosenthal, President of Rosenthal. “With her solution-driven mindset, strong grasp of the credit environment and proven track record in the factoring and asset based lending space, I know Ying will be a perfect addition to our West Coast division.”

 

Fluent in Mandarin, Ying joins Rosenthal from CIT, where she served in a variety of roles, most recently as Vice President of Business Development for the Western Region. During her tenure at CIT, she held a number of other positions, including credit analyst, account executive and senior underwriter. She previously managed the underwriting team, which structured and closed factoring programs and facilities across the apparel, footwear, accessories, textile, furniture, home furnishing, consumer electronics and houseware industries.

 

“No one is more knowledgeable or trusted in this industry than Rosenthal,” said Ying. “I’m excited to be a part of expanding Rosenthal’s presence throughout the U.S. and around the world and look forward to our future success together.”

Rosenthal is hosting a Webinar for the Gift & Home Trade Association Members on March 9th

Rosenthal is hosting a Webinar for the Gift & Home Trade Association Members on March 9th

Upcoming Webinar: Simple Steps for Financing Your Future

Open To: GHTA Members Only

Date: Thursday, March 9 Time: 11AM - 12PM EST Presented By: Paul Schuldiner


Learn how to build a solid financial foundation for your growing gift and home business. Don’t let seasonality or large, unexpected orders knock you off course. From creating better cash flow to identifying the right financing solutions to thinking about how to balance growth with a need for capital, learn how to master the tips and tricks of the trade that drive growth and help you succeed.

ROSENTHAL TRADE CAPITAL FUNDS $1.5 MILLION INVENTORY PURCHASE COMMITMENT TO NEW YORK-BASED GLOBAL DISTRIBUTOR, SUPPLIER

ROSENTHAL TRADE CAPITAL FUNDS $1.5 MILLION INVENTORY PURCHASE COMMITMENT TO NEW YORK-BASED GLOBAL DISTRIBUTOR, SUPPLIER

(NEW YORK)September 14, 2016 – Rosenthal Trade Capital (RTC), a new division of Rosenthal & Rosenthal, Inc., today announced its latest purchase order finance deal with a global distributor and supplier of electronic, computer and aviation parts, components and hardware.

As part of the transaction, RTC will provide a $1.5 million purchase order finance facility to assist with the immediate purchase of goods against several large existing sales orders. By leveraging this new financing resource, the client can now pursue a larger incremental sales volume with prospective customers that they previously may have passed on due to lack of liquidity.

RTC will fund two different transaction types for this client: (1) off-the-shelf domestic component purchases with quick-turning transactions and (2) longer term (import production component) purchases. RTC’s extensive international trade expertise will provide letters of credit and cash against documents funding to purchase inventory that is presold to major Fortune 500 end-customers.

The client was referred to Rosenthal by the company’s existing asset based lender. The lender was looking to have a purchase order finance facility in place so the client would be better positioned in the marketplace to take advantage of the projected upswing in U.S. defense spending.

For more information about Rosenthal Trade Capital and this transaction, please visit www.rosenthalinc.com/rosenthaltradecapital and contact Paul Schuldiner at 212-356-1703 or PSchuldiner@rosenthalinc.com.

ABOUT ROSENTHAL & ROSENTHAL

Rosenthal & Rosenthal (www.rosenthalinc.com) is the leading factoring, asset based lending and purchase order financing firm in the United States. Founded in 1938 by Imre J. Rosenthal, the firm is now led by the second and third generations of the Rosenthal family. As a privately held company, Rosenthal is committed to providing personalized service and flexible lending to clients across a broad range of industries. 

CFA 40 Under 40 honors Eric Bader

CFA 40 Under 40 honors Eric Bader

 

 

 

 

CFA’s 40 Under 40 Awards Celebration,  September 22nd at the Waldorf Astoria, will honor Eric Bader, CFA, with a Business Development Award among 39 other industry professionals.  Congratulations Eric! 


ROSENTHAL LAUNCHES NEW DIVISION TO OFFER ALTERNATIVE INVENTORY FINANCING SOLUTIONS TO GROWING BUSINESSES

ROSENTHAL LAUNCHES NEW DIVISION TO OFFER ALTERNATIVE INVENTORY FINANCING SOLUTIONS TO GROWING BUSINESSES

Paul D. Schuldiner Tapped to Lead Rosenthal Trade Capital

 

Rosenthal & Rosenthal, Inc., a leading private commercial finance company specializing in factoring and asset based lending, today announced the launch of Rosenthal Trade Capital, a new division that provides alternative inventory financing solutions to cash-constrained companies. The new group will be led by finance veteran Paul D. Schuldiner and will add a suite of new offerings to complement the 78-year-old firm’s already robust factoring and asset based lending business divisions.

 

Rosenthal Trade Capital will serve importers, exporters, wholesalers, assemblers and light manufacturers that face complex challenges ranging from seasonality and rapid growth to undercapitalization and turnaround situations. Through the new division and product offerings, clients will have access to a broad spectrum of alternative inventory financing solutions, including:

 

·         Purchase order financing for international and domestic presold inventory purchases

·         Production financing for light manufacturing and assembly businesses

·         Government contract financing

 

A seasoned financial executive, Schuldiner joins Rosenthal as Senior Vice President of Rosenthal Trade Capital, bringing nearly 20 years of experience in the purchase order and trade finance business. In his new role, Schuldiner will be responsible for driving the overall business strategy for Rosenthal Trade Capital. Also joining Schuldiner from Wells Fargo Capital Finance is Jennifer Draffkorn, who will be responsible for portfolio management and underwriting at Rosenthal Trade Capital. Their appointments are effective as of July 1, 2016.

 

“We are thrilled to launch our newest division, Rosenthal Trade Capital so that we can continue to provide the kinds of services and financing products that fit our clients’ individual, and often complex needs,” said Peter Rosenthal, President of Rosenthal. “Under Paul’s leadership, I’m confident Rosenthal Trade Capital will become another substantial platform for growth for our firm and my family’s legacy.”

 

As a partner and Managing Director of Business Development at King Trade Capital, Schuldiner was responsible for providing purchase order and contract finance for small to middle-market companies. He previously held a senior leadership role in the Purchase Order Finance Group of Wells Fargo Capital Finance and was a principal at Transcap Associates for 11 years before Wells Fargo acquired it in 2008.

 

“It’s a privilege to join the Rosenthal team and I’m looking forward to bringing my industry expertise to help drive growth at a company with such a rich legacy and strong reputation for excellence and quality,” said Schuldiner.

 

SEPHARDIC BIKUR HOLIM HONORS THE ROSENTHAL FAMILY FOR THE PARTNERS IN KINDNESS AWARD

On Monday, June 27th Rosenthal was pleased to be honored at the Fourth Annual Sephardic Bikur Holim golf event with The Partners in Kindness Award.  Accepting the award on behalf of the Rosenthal Family was Peter Rosenthal, Cassie Rosenthal, Eric Bader, and Chris Sanjenis.  We were overwhelmed by the support shown that day and want to express our gratitude to all in attendance and those who donated.

From left to right: Chris Sanjenis, Adam Winters, Marc Heller, Cassie Rosenthal, Eric Bader, Peter Rosenthal, and Lee M Cohen 

From left to right: Chris Sanjenis, Adam Winters, Marc Heller, Cassie Rosenthal, Eric Bader, Peter Rosenthal, and Lee M Cohen 

 

Sephardic Bikur Holim  is a non profit mental health and social service agency dedicated to caring for people in need with compassion, discretion, and respect.  They provide for health sustenance, support, and well-being of children and adults, the infirm and the disadvantaged through an ever-expanding spectrum of services, programs and resources.  At Sephardic Bikur Holim, their goal is to invest in families and individuals with strength and self-esteem so that they can rise with dignity to their utmost potential.

 

Gifts & Dec: How To Be An Even Better Entrepreneur

Gifts & Dec: How To Be An Even Better Entrepreneur

If you're like most entrepreneurs and small business owners in the gift and home industry, you likely wear a lot of hats. Perhaps you're pulling double duty designing new product lines while worrying about whether your accounting is in order. Or maybe you’re managing your company’s vendor relationships and simultaneously working to streamline your manufacturing process. As your business continues to thrive, it’s becoming more and more apparent that you can’t do it all, at least not on your own....

Cassie Rosenthal Receives the Inaugural Renaissance Award

Cassie Rosenthal Receives the Inaugural Renaissance Award

 February 25th, 2016


The New York Institute of Credit Women in Achievement Awards Presents Cassie Rosenthal with the Inaugural Renaissance Award.

The New York Institute of Credit (NYIC) was founded in 1918 as the New York Chapter of the National Institute of Credit (NIC). In 1957 NYIC was granted an absolute charter as an educational corporation by the Board of Regents of the State of New York. As a non-profit organization, NYIC has always attempted to bridge the gap between business theory and business practice. As a result, the faculty of NYIC consists of educators who are primarily credit executives or prestigious and articulate accountants or lawyers who are appreciative of the value of a close alliance of the professions. The synergetic education created out of that special relationship has been effective and acknowledged. The administration of the NYIC is conducted by Trustees, elected Officers and a staff which is headed by the Executive Director.