How a Virginia Janitorial Services Company Used Invoice Factoring to Fund Payroll and Support Contract Expansion

The Situation

A Virginia-based janitorial services company was awarded an expanded contract to support a permanent casino facility after servicing the temporary site. The new agreement significantly increased staffing and operating costs, but invoices were billed at month-end with extended payment terms — creating a cash-flow gap between payroll and customer payments.

The company needed reliable working capital to support payroll, onboarding, and day-to-day operations during ramp-up.

The Solution

SouthStar Capital provided a $500,000 Invoice Factoring facility to convert outstanding receivables into immediate working capital.

The facility:

• Accelerated cash tied to invoices

• Supported weekly payroll and new hiring

• Stabilized cash flow during contract expansion

The Result

With the facility in place, the company was able to:

• Add staff to support the larger facility

• Maintain uninterrupted service delivery

• Transition smoothly into the new contract

The business is now positioned for continued growth with dependable liquidity behind ongoing operations.