SouthStar Capital provided a $1 million invoice factoring facility for an industrial mechanical contractor, providing working capital to support continued growth, weekly payroll and project expenses.
Previously self-funded, the contractor needed additional liquidity when one of its largest customers transitioned from payment due upon receipt to net 30 terms. The longer payment cycle created a gap between collecting receivables and covering weekly payroll, materials and consumables.
SouthStar’s invoice factoring facility will allow the company to utilize their invoices into working capital, helping it manage ongoing expenses and take on additional work.
