How Outstanding Invoices Can Slow Down Your Manufacturing Business

In the manufacturing industry, growth often brings new challenges, particularly with cash flow. As manufacturers take on larger orders and expand their operations, they may encounter delayed payments from their customers that can stall production and strain supplier relationships. A Pennsylvania-based manufacturing company specializing in smart electrical technology systems recently faced this exact issue, and their solution provides a valuable lesson for manufacturers struggling with cash flow gaps.
The Cash Flow Crunch
This manufacturer was experiencing significant growth, invoicing between $250,000 and $500,000 per month. As a subcontractor for major energy performance projects, they were responsible for installing energy-efficient systems for schools and businesses. However, the company encountered immediate cash flow issues when two large invoices—one for $330,000 and another for $35,000—remained unpaid by their customer.
With ongoing contracts and plans to onboard three new clients, the manufacturer needed to secure working capital quickly to meet supplier payments and keep production moving. Like many manufacturers, they faced the common challenge of outstanding invoices and slowing down operations.
Overcoming The Hurdle
To overcome this hurdle, the company contacted SouthStar Capital for a flexible financing solution. SouthStar provided a $750,000 Factoring Facility, allowing the company to access immediate cash by factoring their outstanding invoices. Unlike traditional loans, which often involve lengthy approval processes, factoring enabled the manufacturer to quickly unlock the working capital they needed to cover their expenses and keep production on schedule.
This financing solution allowed them to bypass waiting for customer payments and avoid interruptions in their operations. Invoice Factoring provided the necessary liquidity to pay suppliers and continue fulfilling contracts for their growing client base.
Keep Your Business Moving Forward
With the $750,000 Factoring Facility in place, the Pennsylvania manufacturer was able to:
- Pay their primary suppliers on time.
- Maintain ongoing operations without delays.
- Expand their client base and take on new contracts.
- Continue developing innovative smart plug systems for schools and businesses.
By addressing the cash flow gap with SouthStar’s financing solution, the company smoothed out its financial operations, enabling them to confidently pursue growth opportunities in the manufacturing industry.
If your manufacturing business is struggling with delayed payments and outstanding invoices, you don’t have to let cash flow issues slow you down. SouthStar Capital offers flexible financing options designed to help you meet customer demands, pay suppliers on time, and grow your business.