Rosenthal & Rosenthal completed two asset-based lending transactions totaling $7.5 million and one collection factoring facility.
A California-based company that designs, markets and distributes holiday and special occasion gift sets was seeking a new working capital facility that could quickly grow as the business was experiencing rapid year-over-year growth. The company’s executive, a seasoned industry veteran, was looking to replace the company’s working capital facility after their existing lender wound down its platform. The company wanted a reliable debt provider with a strong balance sheet and an appetite to increase the facility in lock step to the brand’s near future growth. With a lean management team, the company also wanted a lender with user-friendly, easy reporting requirements. Rosenthal was able to step in quickly to provide a $4.5 million asset based lending facility in time to support the company’s peak shipping season.
A furniture company based in California approached Rosenthal when they were not getting enough coverage on their growing base of customers from their existing factors. One of the company’s executives was familiar with Rosenthal, having worked with us through a prior business and appreciated how well-versed and experienced the credit department is in the furniture space. Rosenthal entered into an intercreditor agreement with the company’s banking financial partner and extend greater credit protection that would allow the company to execute on their growth strategy. With the addition of Rosenthal’s collection factoring facility, the company no longer needs to carry significant paper on their own. And the accounts receivable factored by Rosenthal provides a stronger layer of protection for the bank’s collateral.
A California-based direct-to-consumer home textile company known for their sustainable luxury line of bedding, bath and other home goods was facing post-pandemic challenges that were impacting the company’s profitability and cash flow. Already closely familiar with the client’s business, Rosenthal’s team worked closely and collaboratively with the client to structure and deliver a thoughtful and creative inventory facility to support the brand’s turnaround plan. Rosenthal provided a $3 million asset based lending facility that refinanced the company’s existing line and provided additional working capital.
“Each of these transactions demonstrates Rosenthal’s value to clients and the impact that creative and soundly structured alternative financing facilities can have on a business and their bottom line,” said Ying Yang, SVP of Business Development at Rosenthal. “Our ability to move quickly to provide additional working capital offers clients the flexibility and room to grow as they scale their business.”