Medical Products Distributor Uses Accounts Receivable Financing to Support Growth and Supplier Payments

The Situation:

A Michigan-based distributor of medical-grade wound-care products supplies clinics and medical practices nationwide. The company is required to pay suppliers upfront while reimbursement from customers is received later, creating a cash-flow gap as sales volumes increased.

The business needed reliable working capital to support purchasing activity and maintain supplier relationships while continuing to scale.

The Solution:

SouthStar Capital provided a $5 Million Accounts Receivable financing facility that accelerates cash tied to outstanding invoices, giving the company consistent access to liquidity needed for inventory purchasing and operating expenses.

The Result:

With the facility in place, the distributor was able to fund supplier payments on time, support growing order volume, and continue expanding nationwide operations while preserving financial flexibility.