Rosenthal & Rosenthal completed five transactions in March that will help address working capital needs, mitigate risk and support growth opportunities for several of the firm’s clients across the Southeast. The transactions – three factoring deals, one asset based lending deal and one purchase order financing transaction – demonstrate Rosenthal’s solution-based approach and breadth of funding options.
A family-owned and operated furniture and home goods business was searching for a new factoring relationship that would offer a more hands-on approach and personalized service. The company was initially attracted to Rosenthal because it is one of the only factors remaining that provides individual credit representatives to help oversee client accounts.
“Our talented team in North Carolina was able to step in quickly to take over the client’s customer relationships and the client appreciates that their credit manager is only a phone call away,” said Leigh Lones, Senior Vice President and Southeast Regional Sales Manager at Rosenthal.
A long-time furniture manufacturer based in the Southeast was approached by a larger West Coast furniture importer that wanted to establish a solid East Coast presence and expand its manufacturing capabilities. The acquisition would create natural synergies across the two customer bases and would also improve their ability to scale and broaden the product mix. The larger importer wanted to utilize factoring for the newly acquired company to manage customer risk exposure and help determine new customer markets that would be available as part of the acquisition.
“This complex deal involved a first-time factoring facility for the importer and the timeline to close was extremely tight, ” said Brian Resutek, Senior Vice President at Rosenthal. “It was imperative that all of the financing and factoring facilities were arranged in advance. Rosenthal was able to work quickly with the client to ensure the deal closed on time.”
A Georgia-based importer and distributor of premium outdoor recreational products was experiencing explosive double-digit sales growth as many consumers flocked to outdoor activities throughout the COVID-19 pandemic. Facing an uptick in sales orders from their existing dealers and e-commerce channels, the company also secured a large sales program with a major big box sporting goods retailer to supply a seasonal product line. The company’s consulting firm recommended they consider factoring and purchase order financing to assist with their increasing financing needs to keep up with demand. Rosenthal structured a complete working capital solution which included a $1.5 million factoring facility and a $750,000 purchase order financing facility. The increase in working capital helped the company obtain goods from major overseas suppliers and helped to mitigate risks in their supply chain.
“Rosenthal’s track record of success in working with growth companies to address challenges in their international supply chains is why we are frequently called upon as a preferred resource,” said Rosenthal’s PO Finance Division Head Paul Schuldiner.
A Midwest-based food distributor serving restaurants up and down the East Coast was facing limitations on its working capital facility from its existing lender – a community bank – given the shrinking credit market. The company’s advisor recognized the positive impact that additional working capital would have on the business and introduced the company’s executives to Rosenthal’s Atlanta office. Rosenthal leveraged the company’s inventory to support a $7.5 million dollar revolver and was able to provide more working capital than the company’s bank was able to offer.
“By taking the time to learn about and understand the companies we lend to, we’re able to earn their trust,” said Al Foster, Vice President and Business Development Officer at Rosenthal. “We’re family-owned and independent, which means we aren’t limited by red tape and regulations that often prevent other institutions from offering clients the funding they actually need.”