SouthStar Capital Fuels Growth for Energy Solutions Company with $750K A/R Facility, Enabling Seamless Operations and Expansion

The Situation
A company specializing in installing smart plugs and energy monitoring systems for businesses requires financial support to manage its growing operations. With a leadership team comprising a CEO and a CFO, the company invoiced between $250,000 and $500,000 monthly for completed projects. They had two invoices needing immediate funding: one for $330,000 and another for $35,000. Additionally, the company was preparing to onboard three new clients and working on new contracts. They developed smart plug systems for schools and businesses as subcontractors, collaborating with industry giants like Johnson Controls and Honeywell. They were also involved in energy performance contracts.
The Solution
SouthStar Capital provided a $750,000 Accounts Receivable (A/R) facility to address the company’s financial needs. This facility ensured that the company could manage its cash flow effectively, covering the immediate funding requirements for its outstanding invoices. By leveraging this financing, the company could continue its operations seamlessly and take on new clients without financial constraints.
The Result
With the $750,000 A/R facility from SouthStar Capital, the company successfully funded its immediate invoices, totaling $365,000. This financial support allowed the company to maintain its operational momentum, focusing on delivering high-quality energy solutions to its clients. The backing from SouthStar Capital positioned the company to manage future invoicing efficiently and pursue growth opportunities within the energy performance contract market.