Government Contract Financing Propels Small Business to Success
This contract marked her first venture into government contracts, and while the opportunity was significant, the financial requirements posed a challenge. With a cost of goods totaling $130,000 and additional responsibilities, including recycling the old mattresses, she needed financial backing to proceed confidently.
When a business has an opportunity to grow, having a reliable financial partner like SouthStar Capital can make all the difference. With our support, companies can confidently tackle new challenges, secure new contracts, and continue to grow.
Previously, she had primarily worked on a commission basis with commercial clients like Las Vegas casinos and resorts. However, this direct sale to the Air Force offered a much higher gross margin of 37.8% compared to her usual 7% commission.
SouthStar Capital stepped in with a $500,000 Accounts Receivable (A/R) facility, enabling her to secure the necessary goods and begin operations without cash flow constraints. This support allowed her to transition from a commissioned sales representative to a successful distributor, significantly improving her revenue model and establishing herself as a reliable government contractor.
This success highlights the importance of seizing opportunities and the vital role of having the right financial partner. With SouthStar Capital’s support, she completed the contract and established a solid foundation for future growth in the government contracting space.
Learn more on how to grow your business with SouthStar Capital.