Crossroads Financial announced that it has provided a $1 milion purchase order financing facility for a manufacturer and distributor of women’s apparel and accessories.  The company, a start-up without any vendor credit, turned to Crossroads to open letters of credit for the benefit of their Asian manufacturer.  The letters of credit were posted with the backing of purchase orders from their credit-worthy customers.  Crossroads is partnering with a lender on the transaction who is factoring the client’s receivables generated from the purchase order financing provided by Crossroads. 

“I have had great success financing startups that have real growth potential” commented James Rothman, president of Crossroads, when asked about Crossroads Financial providing funding for new companies. Rothman also noted: “We expect the PO Financing to help build inventory so that they might transition to an inventory revolver in the near term.”