Rosenthal Capital Group (RCG), a private commercial finance firm in the United States, completed a purchase order financing facility totaling $12 million for a licensed apparel importer based in Canada, with operations in both Canada and the United States.
The company, a wholesale lifestyle apparel distributor, was doubling its business with big box retailers in the United States and Canada. As a result, the company was in need of a purchase order financing solution that would support their continued growth and ensure timely payments to overseas factories. RCG was able to structure a purchase ordering financing facility totaling $12 million in funding with a senior asset-based lender via an intercreditor agreement, along with additional intercreditor agreements with two other lending parties. RCG will pay the overseas factories cash against documents while goods are in transit. The transaction involved both U.S. and Canadian co-borrowers.
“In this volatile market, clients must find ways to stay competitive and secure the financing they need to pursue critical growth opportunities,” Megan Slovak, senior vice president and underwriting manager for purchase order financing at RCG, said. “In this case, RCG was able to collaborate with the client’s existing lenders to ensure the company had the right mix of financing in place that would allow them to continue to deliver to their end customers while also scaling their business.”
