SouthStar Capital funded a $2 million accounts receivable facility for a family-owned government contracting firm experiencing growth in procurement activity.
The company’s most recent award, a procurement project for a U.S. military branch, created an immediate need for improved cash flow to support supplier payments and fulfill expanding order volume. Although the company maintains established supplier terms, the size and timing of the new orders exceeded their historical purchasing levels. To ensure smooth execution and uninterrupted delivery, the company sought a reliable alternative financing solution that could bridge the gap between supplier obligations and government payment cycles.
SouthStar Capital structured a flexible $2 million accounts receivable facility that enables the contractor to factor invoices tied to ongoing federal orders. This solution provides immediate working capital, strengthens supply chain continuity and allows the firm to confidently meet increased demand.
“Supporting companies that serve our federal agencies is an honor,” Jon Shane, vice president of broker relations at SouthStar Capital, said. “This facility gives them the liquidity needed to move quickly, stay on schedule and continue delivering high-quality products without cash flow constraints.”
