SouthStar Capital is pleased to announce a $1 million invoice factoring facility for an industrial mechanical contractor, providing working capital to support continued growth, weekly payroll, and project expenses.
The company provides plant services, millwright work, piping, equipment setting, structural steel fabrication and erection, welding, and quality control. Since its founding, the business has experienced substantial growth through established customer relationships and strong demand for its services.
Previously self-funded, the contractor needed additional liquidity when one of its largest customers transitioned from payment due upon receipt to net 30 terms. The longer payment cycle created a gap between collecting receivables and covering weekly payroll, materials, and consumables.
SouthStar’s invoice factoring facility will allow the company to utilize their invoices into working capital, helping it manage ongoing expenses and take on additional work.