SouthStar Capital Provides $4MM PO & A/R Financing to Support National HVAC Growth

The Situation

 A newly formed subsidiary of a publicly traded energy company identified a significant growth opportunity in the HVAC installation sectors. To support this initiative, the company partnered with an international HVAC manufacturer and a U.S.-based importer to launch a proprietary product line incorporating AI-driven efficiency enhancements. 

The subsidiary, established in early 2025, secured a purchase order valued at nearly $2MM from a nationally recognized customer generating more than $1 billion in annual revenue. The customer paid a 50% deposit upfront, leaving a final balance to pay due upon delivery. 

The company required a financing solution to bridge the funding gap and successfully fulfill the order. 

The Solution

How was the problem solved? SouthStar Capital provided a $4MM Purchase Order and Accounts Receivable Financing facility tailored to the client’s growth plans. For the initial nearly $2MM million order, SouthStar advanced 85% of the supplier’s balance due, while the client covered the shortfall in cash. 

The facility ensured the company had the necessary capital to pay its supplier, complete the purchase order, and maintain operational momentum. Additionally, the financing was structured to support a longer-term 24-month arrangement, positioning the client to capture additional orders expected from their national customer. 

The Result

With SouthStar’s factoring facility in place, the company is now able to:  

• Confidently finance supplier costs and execute large purchase orders. .  
• Deliver on commitments to a major national customer with $1B+ in annual revenue. 
• Strengthen its market position in the HVAC space while leveraging its parent company’s broader energy-sector platform. 
• Pursue future growth opportunities under a scalable financing program. 

This partnership highlights SouthStar Capital’s ability to deliver flexible, relationship-driven financing solutions that empower businesses to expand into new markets and scale with confidence.