Rosenthal & Rosenthal completed a joint recourse factoring and purchase order financing deal.
A global ski equipment and accessories brand with a presence in the U.S., Canada and Europe, and an existing Rosenthal recourse factoring client, was in need of additional liquidity to support seasonal growth. Based on the production forecast for the upcoming 2024-2025 season, the company needed to access additional liquidity to pay their factories as their supplier relationship required prepayments and deposits. Rosenthal provided a $3.25 million purchase order financing facility and an expansion of the recourse factoring facility to a combined $3.5 million, which would now cover both U.S. and Canadian operations. To meet the working capital demands leading up to the company’s peak season, Rosenthal worked in collaboration with the client under a tight deadline for a timely closing that would allow them to take advantage of seasonal sales opportunities.
“Together with the client, we were able to create the right solution to address the liquidity crunch of a growing brand faced with significant seasonal sales opportunities,” said Jennifer Draffkorn, SVP and Portfolio Manager for Purchase Order Financing at Rosenthal. “Our team’s deep experience working with global companies with complex supply chain infrastructures led to a creative solution that provided the seasonal working capital the client needed along with increased support from the existing factoring facility.”
“This one-stop-shop arrangement is a great example of how businesses benefit from comprehensive and complementary financing solutions that give them more confidence to execute operational milestones and growth initiatives,” said Brian Gagel, SVP and Recourse Factoring Portfolio Manager at Rosenthal. “Our experience working with both domestic and Canadian subsidiaries of foreign parent companies positioned us well to increase the U.S. recourse factoring facility and add a factoring facility for the Canadian subsidiary, which allowed the client to pursue its global growth goals.”