SouthStar Capital funded a $4 million purchase order and accounts receivable financing facility for a newly formed subsidiary of a publicly traded energy company that is expanding into the HVAC installation sector.
The subsidiary, established in early 2025, identified a growth opportunity with advanced heat pump systems and partnered with an international manufacturer and U.S.-based importer to launch a proprietary product line featuring AI-driven efficiency. To support this expansion, the company secured a nearly $2 million purchase order from a nationally recognized customer generating more than $1 billion in annual revenue.
While the customer paid a 50% deposit upfront, the company required additional financing to cover the remaining supplier balance of nearly $1 million. SouthStar structured a facility with an 85% advance rate on the supplier’s balance due, while the client contributed the shortfall in cash. The program was further designed to support a 24-month financing term.
“With this facility, SouthStar Capital provided the flexibility and capital needed to fulfill a major order, strengthen supplier relationships and position the client for ongoing growth,” Brian Cate, assistant vice president at SouthStar Capital, said. “Our team is committed to structuring financing solutions that allow innovative businesses to expand into new markets with confidence.”
With SouthStar’s financing in place, the company is now able to finance supplier costs and execute large-scale purchase orders, deliver on commitments to a major national customer and pursue future growth opportunities through a scalable financing program.
