Paul Schuldiner and Team Provide a $12.5MM P/O Facility for Footwear Importer
(NEW YORK) – May 20, 2019 –Rosenthal & Rosenthal, Inc., the leading independent factoring, asset based lending and purchase order financing firm in the United States, today announced the completion of a recent $12.5 million inventory production finance deal for an importer of women’s footwear.
A New York-based importer was restructuring its portfolio of well-established licenses, as well as its growing private label and e-commerce platform, all under its corporate umbrella. The company’s outside accountants, well known to Rosenthal, referred the client to Rosenthal to assist with financing during the restructuring process. The restructuring impacted the company’s relationships with its overseas suppliers and its ability to extend additional open credit terms. In addition, the likelihood of impending tariffs also created further strain with the company’s overseas suppliers. The company first reached out to its existing lender – the factoring division of a large national bank – to alleviate the cash flow strain the business was experiencing. While the factor was supporting the company with an approved overadvance, the bank-owned factor was unwilling to increase the overadvance to the level required. As a result, the successful execution of over $50 million of sales to a combination of big box, specialty retail and other national department and discount retail chains was in jeopardy. Given the extraordinarily large seasonal inventory build, requiring additional open terms from suppliers or additional overadvances from its factor, neither of which were available, the client’s outside accountant recommended utilizing purchase order financing to assist with the increasing financing needs.
Read about how Rosenthal was able to help here.