Financing Solution Helps Distributor Overcome Net 90 Cash Flow Strain

Accounts Receivable Financing, Blog, Case Study, Distributors, Payroll Funding

The Situation

A Southeast-based distributor of a patented textile tire traction product was experiencing rapid growth and increasing demand. The company faced a cash flow gap due to required deposits on inbound inventory and delayed payment terms from major retail channels, including a large online marketplace operating on Net 90 payment terms. With additional shipments already scheduled and seasonal volume rising, the company needed immediate working capital support to maintain inventory flow and meet orders. 

The Solution

SouthStar Capital structured a combined A/R and Purchase Order financing facility to: 

  • fund supplier deposits and balances on incoming containers 
  • advance against invoices despite extended payment terms 
  • offer competitive advance rates aligned with long cycles 
  • support continued ordering and seasonal demand 

This structure successfully bridged the timing between supplier payments, inventory availability, and retailer remittance. 

The Result

With SouthStar’s support, the company secured the capital needed to continue ordering products, avoided the cash strain from delayed payments, and maintained sufficient inventory levels through its peak season. This stability positioned the distributor for national retail growth, with SouthStar’s flexible PO and A/R financing enabling them to sustain momentum and scale confidently within the consumer products market.