Rosenthal Closes Three ABL Transactions Across Food & Beverage and Beauty Sectors

(NEW YORK) MARCH 7, 2024– Rosenthal & Rosenthal, Inc., the leading factoring, asset based lending, purchase order financing and inventory financing firm in the United States, today announced the completion of three asset based lending transactions totaling $7.5 million. The firm’s Pipeline division, focused on providing working capital to emerging consumer product brands, led the transactions.

A popular CPG brand in the food & beverage space was looking to start a relationship with a lender who could scale alongside the company’s growth plans. Having largely funded the cash needs of the business through equity and founder-backed lines of credit in the past, the company was introduced to Rosenthal by an accounting firm to explore alternative financing options. Rosenthal was able to step in and provide a $3 million asset based lending facility backed by accounts receivable and inventory.

A private equity firm had recently invested in a growing well-known skincare brand and wanted to supplement that raise with a debt facility. The additional liquidity allowed the company to free up cash flow that was tied up on their balance sheet. The company sought out an alternative lender because many banks were uncomfortable lending on such a high concentration with a major beauty retailer. The private equity firm introduced the company to Rosenthal, who provided a $3.5 million asset based lending facility backed by accounts receivable and inventory. 

After a recent Series A investment, a growing haircare company was looking to scale their retail relationships through a single major distributor. Given there was a concentration with one specific debtor, the company’s current lender was not supportive of their borrowing needs. A venture capital firm that led the Series A investment connected the company to Rosenthal, who provided a $1 million asset based lending facility backed by account receivables and inventory. 

“As an experienced non-bank lender helping consumer brands address their working capital needs, our Pipeline division has the capacity to support companies through a long lifecycle as they grow and scale their businesses,” said Andrew Barone, SVP and Director of Sales for Pipeline at Rosenthal. “Each of these transactions demonstrates Rosenthal’s expertise in providing non-dilutive working capital solutions to brands faced with make-or-break sales opportunities that can significantly change their growth trajectory.”

For more information about Rosenthal and these transactions, please visit www.rosenthalinc.com and contact Andrew Barone at ABarone@rosenthalinc.com or 212-356-1721.