SouthStar Capital funded a combined accounts receivable and purchase order financing facility for a growing distributor of a patented textile tire traction product serving retailers throughout the Southeast.
As demand continued to accelerate and seasonal volume increased, the distributor faced cash flow pressure caused by required supplier deposits and extended payment terms from major retail partners, including a large online marketplace operating on NET 90. With multiple inbound shipments already scheduled and inventory needs rising, the company needed a flexible financing partner capable of supporting its growth without slowing momentum.
SouthStar Capital structured a customized facility that covered supplier deposits and balances on incoming inventory while also advancing against invoices despite delayed remittance cycles. By bridging the timing gap between supplier payments, inventory availability and retailer payment schedules, the facility provided the liquidity required to maintain supply flow and meet expanding demand.
“With this facility, SouthStar Capital delivered the working capital needed to keep product moving and revenue growing,” Scott Norris, portfolio manager at SouthStar Capital, said. “Our ability to finance both inventory and receivables gives consumer product distributors the liquidity and assurance they need to scale, especially when retailers operate on extended terms.”
