SouthStar Capital Funds $2MM AR Facility to Support Growth for Established Government Contractor

SouthStar Capital is pleased to announce the funding of a $2 Million Accounts Receivable Facility for a long-standing, family-owned government contracting firm experiencing rapid growth in procurement activity. 

Founded in the mid-1990s, the company has built a nationwide reputation for sourcing and distributing specialty products for various federal agencies. Their most recent award—a large-scale procurement project for a U.S. military branch, created an immediate need for improved cash flow to support supplier payments and fulfill expanding order volume. 

Although the company maintains established supplier terms, the size and timing of the new orders exceeded their historical purchasing levels. To ensure smooth execution and uninterrupted delivery, they sought a reliable alternative financing solution that could bridge the gap between supplier obligations and government payment cycles. 

SouthStar Capital structured a flexible $2 million Accounts Receivable Facility that enables the contractor to factor invoices tied to ongoing federal orders. This solution provides immediate working capital, strengthens supply chain continuity, and allows the firm to confidently meet increased demand. 

“Supporting companies that serve our federal agencies is an honor,” said Jon Shane, VP of Broker Relations at SouthStar Capital. “This facility gives them the liquidity needed to move quickly, stay on schedule, and continue delivering high-quality products without cash flow constraints.” 

With SouthStar’s support, the contractor is well-positioned to maintain strong relationships with federal buyers, keep large procurement projects on track, and pursue additional opportunities in the Government Contracting space.