Rosenthal Aids Cosmetics Company to Pivot Production During COVID-19 Pandemic
Rosenthal Aids Cosmetics Company to Pivot Production During COVID-19 Pandemic
The Challenge
In the early stages of the COVID-19 pandemic, the owners of a start-up cosmetics company saw a void in the marketplace for much-needed hand sanitizer that was increasingly in short supply. Recognizing a tremendous growth opportunity, the company immediately took steps to reimagine their product offering and pivot their existing production to produce hand sanitizer.
With nationwide shortages of PPE and other protective products on the rise as the pandemic quickly spread, the company experienced a surge of new customers almost immediately, and watched their new product fly off the shelves. Many of the company’s new customers, who were initially paying in advance, were now requesting terms. In dire need of credit coverage and cash advances to maintain a consistent flow of product, the company’s accountant referred them to Rosenthal.
The Fix
Recognizing the urgency of the situation, especially as more and more competition was cropping up, Rosenthal’s West Coast team quickly intervened to support the company with a robust multi-million dollar factoring solution. Rosenthal was able to get comfortable with the deal so quickly and close the transaction in only two weeks because the owners were well known in their community and known to Rosenthal. The rapidly growing business had some unique requirements, but Rosenthal was able to work with the owners’ established customized processes to help meet their specific needs. With cash advances to support their growing production needs and credit coverage to protect their increasing number of new customers, the company was able to keep their business moving forward and deliver their new hand sanitizer in a timely fashion.