How a Midwest Industrial Services Company Secured $2M in Accounts Receivable Financing

The Situation

A privately owned industrial services company supporting it’s automotive manufacturing facilities required additional working capital as it expanded its direct relationships with large OEM customers. The company performs specialized, self-performed cleaning and maintenance services inside manufacturing plants and operates on extended payment terms, with most customers paying on net 60 days or longer. 

As contract volume increased and billing activity accelerated, operating expenses, particularly payroll and equipment-related costs, began to outpace customer payment cycles. While the business maintained a strong customer base and solid contract structure, delayed receivable turnover created a short-term cash flow strain. 

The Solution

SouthStar Capital structured a $2 million Accounts Receivable financing facility designed to provide immediate liquidity against eligible receivables. The facility allowed the company to convert outstanding invoices into working capital while continuing to service large, creditworthy customers under existing master service agreements. 

The solution was tailored to accommodate the company’s billing structure, project timelines, and payroll requirements, while providing flexibility as new contracts ramped. 

The Result

With dependable and predictable access to working capital, the company was able to: 

• Maintain consistent payroll and weekly labor payments 

• Support growing invoice volume tied to new OEM contracts 

• Improve cash flow visibility and operational stability 

• Focus on execution and growth rather than payment timing 

The Accounts Receivable financing facility positioned the business to stabilize operations, support renewed revenue growth, and scale confidently as direct customer relationships expanded.