SouthStar Capital, a private direct lender and specialty finance company, closed a $1.5 million accounts receivable financing facility for a Texas-based specialty contractor providing crane operations, structural steel services and piping fabrication.
With a growing project pipeline and increasing working capital needs, the company sought a flexible financing solution to support payroll, operating expenses and continued growth. SouthStar structured the $1.5 million A/R facility around the company’s eligible receivables. The additional liquidity will help support the contractor’s bi-weekly payroll and ongoing project expenses as it continues to expand.
“This facility demonstrates how accounts receivable financing can provide contractors with the liquidity needed to bridge payment cycles and keep projects moving,” Michael Haddad, president of SouthStar Capital, said.
The transaction was referred to by a banking partner and highlights SouthStar Capital’s ability to work alongside financial institutions to provide flexible working capital solutions.
