SouthStar Capital Provides $4 Million PO and AR Facility to Support Growth in HVAC Sector
Charleston, SC - October 2, 2025 - SouthStar Capital is pleased to announce the funding of a $4 million Purchase Order and Accounts Receivable Financing facility for a newly formed subsidiary of a publicly traded energy company that is expanding into the HVAC installation sector.
The subsidiary, established in early 2025, identified a growth opportunity with advanced heat pump systems and partnered with an international manufacturer and U.S.-based importer to launch a proprietary product line featuring AI-driven efficiency. To support this expansion, the company secured a nearly $2MM Purchase Order from a nationally recognized customer generating more than $1 billion in annual revenue.
While the customer paid a 50% deposit upfront, the company required additional financing to cover the remaining supplier balance of nearly $1MM. SouthStar structured a facility with an 85% advance rate on the supplier’s balance due, while the client contributed the shortfall in cash. The program was further designed to support a 24-month financing term, enabling the company to capture additional purchase orders expected from its national customer.
“With this facility, SouthStar Capital provided the flexibility and capital needed to fulfill a major order, strengthen supplier relationships, and position the client for ongoing growth,” said Brian Cate, Assistant VP at SouthStar Capital. “Our team is committed to structuring financing solutions that allow innovative businesses to expand into new markets with confidence.”
With SouthStar’s financing in place, the company is now able to:
● Confidently finance supplier costs and execute large-scale purchase orders.
● Deliver on commitments to a major national customer with $1B+ in annual revenue.
● Strengthen its market position in the HVAC industry while leveraging the resources of its publicly traded parent company.
● Pursue future growth opportunities through a scalable financing program.
This facility reflects SouthStar Capital’s ongoing commitment to delivering relationship-driven working capital solutions that help companies overcome cash flow constraints and achieve long-term success.
About SouthStar
SouthStar Capital, LLC is a nationwide commercial finance company, proudly serving businesses since 2008 with a track record of excellence, innovation, and customer satisfaction.We specialize in providing comprehensive, customized working capital solutions, including Accounts Receivable Financing, Asset-Based Lending, Purchase Order Financing, Equipment Leasing, Government Contracting, Invoice Factoring, and Payroll Funding.