Paul Schuldiner Authors Article in the September '19 edition of TMA's, Journal of Corporate Renewal titled, "Purchase Order Financing: A Turnaround Tool for Companies Selling to Retailers.”


Any commercial finance executive today is sure to have a real-world example or anecdote about the many ways e-commerce has reshaped the retail sector and subsequently impacted his or her clients. Though generally healthy, the retail sector seems to be in a constant state of disruption, with shifting consumer behaviors dictating business strategy and ultimately determining which businesses will survive and which will not.

But according to the National Retail Federation, while store closings and openings are dominating the headlines, more brick-and-mortar stores actually opened in 2018 than in 2017. There are countless examples of how both new and established retailers have adapted to changing consumer demands and the expansion of the e-commerce marketplace.

None of this is news to lenders—and certainly not to the turnaround professionals who work every day to help rehabilitate many of the companies that have felt the burden of these challenging conditions. In the current environment, even the healthiest business will eventually reach a point when credit will inevitably tighten and liquidity will no longer be readily available. When that happens, what is a business to do?