Southstar Capital Delivers $500K Facility to Back Retail Expansion of CPG Brand

Southstar Capital is pleased to announce the successful funding of a $500,000 combined Purchase Order and Accounts Receivable financing facility for a Texas-based, early-stage functional beverage company. 

The company produces a line of powdered, no-added sugar drink mixes made from real fruits and vegetables, designed to support digestive health. With a clean-label formulation and patented product design, the brand has positioned itself as a differentiated alternative within the growing functional beverage market. 

Following new retail distribution through a national grocery chain and a partnership with a leading distributor, the company required working capital to support inventory production, fulfill purchase orders, and manage the timing gap between manufacturing and customer payments. 

Southstar Capital structured a combined Purchase Order and A/R facility that enables the company to fund production runs and utilize their receivables to turn into immediate working capital. This structure provides the flexibility needed to support retail expansion while maintaining consistent operations. 

With improved access to working capital, the company is well-positioned to expand its retail footprint, introduce new product offerings, and continue building momentum in the functional beverage space.