$1 Million Purchase Order and Accounts Receivable Facility Supports Denver-Based Logistics Company’s Growth

The Situation:

A Denver-based logistics and industrial equipment distributor secured several large purchase orders from a prominent federal government contractor. While the new orders represented a significant growth opportunity, fulfilling them required substantial upfront capital to cover supplier and equipment costs.

The company needed a flexible financing solution that could support production and delivery while bridging the gap between paying suppliers and receiving payment from its customers. Without additional working capital, accepting larger orders could have placed considerable pressure on the company’s existing cash flow.

The Solution:

SouthStar Capital structured a $1 million combined Purchase Order Financing and Accounts Receivable Financing facility tailored to the company’s transaction cycle.

The purchase order financing component provided the capital needed to pay suppliers and fulfill confirmed orders. Once the equipment was delivered and the customer was invoiced, the accounts receivable facility converted those outstanding invoices into immediate working capital.

By combining the two solutions, SouthStar provided funding throughout the entire order cycle, from supplier payment through final customer payment.

The Result:

With the facility in place, the company was able to fulfill its new purchase orders without tying up significant internal cash. The additional liquidity strengthened the company’s ability to manage supplier expenses, maintain operations, and confidently accept larger opportunities.

The financing also positioned the company to expand its capacity and continue growing its commercial and government-sector business.