SouthStar Capital, a private direct lender and specialty finance company, closed a $3 million invoice factoring facility for a Charlotte-based stud welding company serving steel fabricators.
As the company continued to grow, the timing gap between completing projects and receiving customer payments created increased cash flow pressure. SouthStar structured a $3 million invoice factoring facility that provides reliable access to working capital as the company completes new projects and issues invoices. The facility will help the business manage payroll and operating expenses while supporting its growing project pipeline.
The company was referred to SouthStar by an existing client performing similar work. With the facility in place, the business can pursue larger opportunities and continue expanding without waiting through extended customer payment cycles.
“Fast-growing construction companies often need additional liquidity to keep pace with new opportunities,” Todd Culbreth, regional vice president of SouthStar Capital, said. “This facility provides the injection of working capital needed to support the company’s continued growth.”
