SouthStar Capital Closes an AR Financing Facility for a Functional Beverage Company

SouthStar Capital is pleased to announce the closing of an Accounts Receivable financing facility for a growing  functional beverage company based in the Southwest. The transaction was structured to support increasing sales volume and near-term production needs. 

The company produces a functional seltzer beverage and sells through its direct-to-consumer website, major online marketplaces, and regional distributors, with manufacturing handled by an established Midwest co-packer. As demand increased, customer payment terms, ranging from immediate payment to net 30 days for larger distributors and retail partners, created timing gaps between production costs and cash collection. 

SouthStar Capital structured an Accounts Receivable financing facility to provide immediate working capital against outstanding invoices, supporting production timelines that require a 50% deposit at order placement and approximately six weeks for manufacturing. The facility enables the company to fulfill new distributor and retail demand, increase production capacity, and scale without diluting ownership. 

This financing positions the business to pursue projected growth in 2026 and continue expanding its presence in the functional beverage market.