Southstar Capital deployed a $7.5 million combined accounts receivable factoring and inventory financing facility for a U.S.-based consumer products company specializing in baked goods.
The company manufactures and distributes a range of shelf-stable frozen bakery products through both direct-to-consumer and wholesale retail channels, serving grocery partners. With growing demand and expansion into new distribution channels, the business required a flexible working capital solution to support inventory production, manage existing obligations, and maintain consistent cash flow.
Southstar Capital structured a combined $6 million A/R and $2.5 million inventory facility designed to unlock liquidity from both receivables and on-hand product.
“This facility enables the business to stabilize cash flow, support continued expansion and operate with greater financial flexibility,” Michael Haddad, president of Southstar Capital, said.
With access to scalable working capital, the company is positioned to continue expanding its retail footprint, enter new markets and build on its strong revenue trajectory.
