SouthStar Capital funded a $2 million accounts receivable (A/R) Facility for a Louisiana-based medical supplies distributor. Serving hospitals, clinics, and government agencies across the region, the company had been experiencing rapid growth but needed additional working capital beyond its existing $1 million line of credit with its bank.
With a rising volume of outstanding invoices and customer payment terms extending up to 60 days, the distributor sought a financing solution that wouldn’t disrupt its relationship with the bank. SouthStar delivered a tailored factoring facility that allowed the company to carve out their accounts receivables independently of its credit line.
The new $2 million facility provided immediate access to liquidity, enabling the distributor to fulfill large orders, meet supplier obligations and support day-to-day operations. SouthStar worked closely with the client to align the facility with its customer base and internal processes, ensuring a seamless implementation.
