Rosenthal Provides Multi-Million Dollar Factoring Facilities for Multiple Southeast Furniture Companies

Rosenthal & Rosenthal, Inc., the leading independent factoring, asset based lending and purchase order financing firm in the United States, today announced the completion of several non-recourse factoring deals with multiple furniture companies in Texas and North Carolina.

After a former Rosenthal client sold its furniture business to a well-known furniture brand in 2019, they reached out to Rosenthal to discuss funding for a new company. The client was seeking financing for several of its furniture businesses, both start-ups and established brands, all of which were experiencing cash flow issues as well as credit coverage concerns. Rosenthal was able to offer a non-recourse factoring solution to cover both. 

In addition, when the COVID-19 pandemic began and PPE was in short supply, the client’s medical business saw an enormous growth opportunity to provide its PPE products to large, well-established retailers, hospital systems and government agencies. Rosenthal was able to quickly provide recourse factoring to solve the company’s cash flow issues, which included challenges around vendors requiring deposits and payment in full upon shipment. The company was able to fund the initial orders and then Rosenthal was able to factor the invoices to generate additional cash for future orders. The client’s small team also benefited from outsourcing its collection and payment process services to Rosenthal.

“This was an unusual scenario, but by offering a factoring facility with advances, we were able to address the client’s working capital needs,” said Leigh Lones, SVP and Southeast Regional Sales Manager in Rosenthal’s Atlanta office. “Furthermore, Rosenthal’s ability to provide both non-recourse and recourse factoring, managed as a single facility, was key to this deal.”

Based in High Point, a family-owned and operated furniture business was introduced to Rosenthal by another client when it began to experience rapid growth. A profitable business with a proven track record of success, the client’s volume was expected to grow 30-35% over the next 12-18 months. Their need for advances on account receivables led them to Rosenthal.

When the company’s largest vendor reduced its terms, forcing the company to pay the vendor more quickly, the client faced significant cash flow strain. Business began to pick up through major e-commerce channels and then COVID-19 hit, putting even more pressure on the company’s inventory levels. In the current environment, though terms with a new overseas vendor were tight, the company was able to create a new product that would open up opportunities with new customers. Rosenthal was able to quickly step in to provide a non-recourse factoring facility with advances on account receivables under a $500,000 line.

“We’re pleased we were able to solve the client’s working capital issues by offering a factoring facility with advances to address their issues with vendors,” said Lones. “In this case, credit protection was also valuable to the client as our credit team was able to help the company assess new customers for its new product line.”

For more information about Rosenthal and this transaction, please visit www.rosenthalinc.com and contact Leigh Lones at 470-773-6511 or llones@rosenthalinc.com.

ABOUT ROSENTHAL & ROSENTHAL

Rosenthal & Rosenthal (www.rosenthalinc.com) is the leading factoring, asset based lending and purchase order financing firm in the United States. Founded in 1938 by Imre J. Rosenthal, the firm is now led by the second and third generations of the Rosenthal family. As a privately held company, Rosenthal is committed to providing personalized service and flexible lending to clients across a broad range of industries. Rosenthal has offices in New York, California, Georgia and North Carolina.