Southstar Capital Delivers $3 Million Purchase Order and A/R Facility for Charlotte-Based Critical Power Provider

The Situation:

A Charlotte-based provider of critical power solutions was experiencing a significant increase in order volume from a key customer, with transaction sizes nearly doubling from historical levels. While the company had an established track record and strong supplier relationships, the larger purchase orders created a need for additional working capital to fulfill contracts without straining cash flow. At the same time, existing lender positions needed to be addressed to create a clear path for new financing.

The Solution:

SouthStar Capital structured a $3 million combined Purchase Order and Accounts Receivable financing facility tailored to the company’s supply model. The team conducted thorough due diligence and worked through existing lender relationships to secure a first-position facility. The structure was designed to support short-term purchase order funding alongside ongoing receivables financing, aligning with the company’s quick inventory turnover and direct shipment process from manufacturer to end customer.

The Result:

With the facility in place, the company gained the liquidity needed to execute on larger contracts and support its growing customer demand. The financing solution enabled seamless fulfillment of high-value orders while maintaining healthy cash flow, positioning the business for continued growth and expansion within the critical power market.