Rosenthal & Rosenthal, Inc., the leading factoring, asset based lending and purchase order financing firm in the U.S., announced the completion of two separate deals – a $5 million revolving line of credit and a $1.5 million asset based loan facility – for two new clients.
A family-owned industrial maintenance and repair company showed losses on their 2018 financials. When the company was forced to cut ties with its existing bank lender, they began looking for an alternative lender to fill the gap in funding, so its financial advisory firm introduced them to Rosenthal. Looking closely at the company’s side collateral, 2019 profitable operations and the owners’ long-term track record running the business, Rosenthal was able to quickly get comfortable with the deal, even with a state tax lien on record. While COVID-19 shutdowns prevented Rosenthal from obtaining a subordination from the tax authority, the firm was still able to build in satisfactory reserves and fund a $5 million revolving line of credit for the client.
“Because Rosenthal is private and we aren’t restricted by regulations and red tape like other institutions may be and we can be a little more flexible,” said Rob Martucci, Senior Vice President of Underwriting and Business Development in Rosenthal’s Asset Based Lending Division. “This deal is a perfect example of why it’s important to look beyond the numbers when evaluating a potential client. Businesses are more than just a balance sheet, and we always take the time to learn about and understand the companies we lend to.”
A Texas-based distributor of electrical cable used in the manufacturing of large overhead and building cranes experienced double-digit sales growth and could no longer finance that growth strictly with their own capital. Since its founding in 2015, the company had never taken on bank financing or debt and had never borrowed in the past. Its German partner had been providing financial support, but there was a need for the company to stand on its own and leverage its accounts receivable and inventory assets that were growing rapidly.
Management soon began looking for an asset based lending relationship and a substantial line of credit. Given where the company was in its life cycle and growth trajectory, a third-party consultant introduced them to Rosenthal.
Rosenthal stepped in and was able to quickly analyze the company’s corporate tax returns and do a deep dive into the collateral to determine that the assets were of a quality nature. Rosenthal provided a $1.5 million asset based loan facility, which would allow the company to secure additional trade support to further its sales growth.
“Clients often come to Rosenthal because our independence allows us to evaluate deals and make decisions swiftly, but thoughtfully,” said Robert Schnitzer, Senior Vice President of Business Development at Rosenthal. “When a company is on the threshold of a major growth opportunity, they don’t always have the time for a lengthy review process with various layers of approvals. Rosenthal is still family-owned and run, and our clients benefit from that structure from the very outset of our partnership with them.”