Payroll Funding Fuels Growth for Veteran Care Provider

The Situation
In late 2017, the Veterans Administration (VA) awarded a Non-Medical In-Home Care Provider a contract to deliver in-home after-care to veterans released from the local (VA) Hospital. Despite this valuable opportunity, the owner faced significant challenges. She needed to hire a dozen qualified employees and manage payroll until the VA paid their invoices. With NET-30 payment terms and payroll every two weeks, the company, which was only six months old, had limited revenue and no commercial credit history and was in a tight spot. The owner had been financing operations with personal credit cards, adversely affecting her credit score.
The Solution
SouthStar Capital provided a Payroll Funding program to bridge the gap. This program enabled the business to cover the initial and subsequent payroll cycles. The first set of invoices submitted for funding amounted to less than $4,000. SouthStar Capital advanced 85%, depositing approximately $3,300 into the payroll account the next day.
The Result
Seven years later, this In-Home Care Provider remains a valued client of SouthStar Capital. The company has grown significantly, boasting 50 employees, generating over $100,000 monthly, and operating offices throughout the United States. The Payroll Funding program provided by SouthStar Capital helped sustain the business initially and supported its substantial growth and expansion.