SouthStar Capital closed a $600,000 combined purchase order and accounts receivable financing facility for a Georgia-based government contractor and manufacturing company.
Following the award of a federal contract, the business required additional working capital to fund supplier costs and fulfill purchase order obligations. SouthStar Capital structured a combined purchase order and accounts receivable financing solution to provide funding for inventory procurement and contract fulfillment.
The facility will enable the company to pay suppliers, deliver materials directly to the end customer and access working capital tied to future receivables generated under the contract.
With the financing in place, the company can execute on its government contract obligations while preserving cash flow and supporting continued growth opportunities within the federal marketplace.
