SouthStar Capital closed a $3 million combined purchase order and accounts receivable financing facility for a Charlotte-based provider of critical power solutions.
The company, an established supplier of uninterrupted power equipment to commercial customers, experienced a significant increase in order volume with a key account, with transaction sizes nearly doubling. To support this growth and ensure seamless execution of larger supply contracts, the business required additional working capital and fast that was aligned with its operational cycle.
SouthStar Capital structured a combined purchase order and A/R facility designed to support rapid inventory turnover and ongoing receivables. As part of the process, SouthStar conducted comprehensive due diligence, enabling a smooth and timely close ahead of the initial funding.
The financing structure supports short-duration purchase order funding, paired with A/R financing, allowing the company to manage larger transactions while maintaining liquidity. The underlying transactions involve direct shipment from a global manufacturer to the customer, creating a streamlined flow from funding to invoicing and ultimately collection.
“This opportunity reflects a strong, experienced operator with established and growing relationships and increasing demand from a key customer,” Todd Culbreth from SouthStar Capital, said. “We were able to deliver a structure that supports both immediate execution and long-term scalability.”
With this facility in place, the company is positioned to capitalize on increased demand, execute on larger contracts and continue expanding its presence within the critical power market.
