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.