SouthStar Capital closed an accounts receivable financing facility for a Southeast-based commercial landscaping and maintenance company serving government, multifamily, retail and commercial property customers throughout the region.
As the business entered its peak operating season, it experienced a temporary cash flow gap after a major customer changed its payment terms to Net 60 from Net 30. The change created increased working capital pressure as payroll obligations grew to support a workforce of more than 30 employees and rising seasonal demand.
SouthStar Capital structured an accounts receivable financing facility designed to provide immediate access to working capital by leveraging invoices owed by a well-established commercial customer. The facility enables the company to bridge the timing gap between service delivery and customer payments while maintaining consistent payroll, supporting ongoing operations, and continuing to serve its growing customer base.
“Many service-based businesses face cash flow challenges when payment terms are extended, particularly during periods of growth,” Michael Haddad, president of SouthStar Capital, said. “Our financing solution provides the flexibility needed to maintain operations and capitalize on opportunities without waiting for customer payments to arrive.”
With the financing in place, the company is positioned to maintain steady operations, support its workforce and continue delivering commercial landscaping and maintenance services across its market.
