SouthStar Capital closed a $5 million accounts receivable financing facility for a privately owned oilfield services company operating in major U.S. energy-producing regions.
The company provides specialized equipment and field services supporting completion and production operations for energy producers. With services billed on regular cycles and customer payments received on extended terms, the business required additional working capital to support ongoing operations and planned expansion.
As demand increased, upfront operating costs related to equipment deployment, staffing and field operations began to outpace customer payments. SouthStar Capital structured the accounts receivable financing facility to convert eligible invoices into immediate liquidity, providing the company with reliable access to working capital tied directly to its receivables.
The facility supports continued growth, strengthens cash flow predictability and allows the company to scale operations while maintaining service levels for existing customers.
“Energy service companies often need flexible capital solutions that align with active contracts and billing cycles,” David Von, executive vice president at SouthStar Capital, said. “This facility provides dependable liquidity to support growth while preserving operational momentum.”
The financing positions the company to expand capacity, support additional field activity and pursue new opportunities as demand continues to increase.
