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