SouthStar Capital Provides $1.5 Million AR Financing Facility to Industrial Services Company

SouthStar Capital is pleased to announce the funding of a $1.5 Million Accounts Receivable financing facility for a privately owned industrial services company in the Gulf Coast region. 

The company provides both facility-based and on-site industrial services for commercial and industrial customers, with most projects billed upon completion and the majority of work self-performed by its employee team. 

As project volume increased, labor and operating expenses began to outpace customer payment cycles, creating the need for a more reliable source of working capital. The company was referred to SouthStar Capital by a financial consultant seeking an A/R Financing solution to help stabilize cash flow and support ongoing growth. 

SouthStar Capital structured the $1.5 Million Accounts Receivable facility to provide dependable access to liquidity tied to outstanding invoices, helping the company better manage the timing between completed work and customer payments. 

“Companies that self-perform specialized project work often face cash flow pressure while they wait on customer payments,” said Todd Culbreth, Regional Vice President at SouthStar Capital. “This facility was crafted to provide dependable access to working capital, eliminate the fear of not making payroll on time or causing late vendor payments, and confidence to grow and take on larger projects.” 

The new financing strengthens day-to-day cash flow and supports the company’s ability to maintain operations while pursuing additional growth opportunities.