SouthStar Capital Secures Startup’s Success with $250K Financing to Fulfill U.S. Coast Guard Contract and Drive Growth

The Situation
A new startup specializing in government procurement recently landed its first major contract to supply products to the U.S. Coast Guard. This five-year contract was a significant milestone for the company. However, the company encountered a cash flow challenge to fulfill the initial order valued at $47,000. They needed immediate funding to pay the supplier and ensure the product could be delivered by the deadline.
The Solution
To address this issue, the company turned to SouthStar Capital. SouthStar provided a $250,000 Purchase Order (P/O) and Factoring Facility.
This financing solution provided by SouthStar enabled the company to:
- Pay the Supplier: Cover the upfront costs required by the supplier
- Ensure Timely Delivery: Meet the delivery deadline for the U.S. Coast Guard without financial strain.
The facility allowed the company to fulfill its initial order and handle the cash flow challenge efficiently, ensuring the contract’s requirements were met on schedule.
The Result
With SouthStar Capital’s$250,000 Facility, the company completed its first order for the Coast Guard on schedule. This achievement ensured they met their obligations and set the stage for continued success throughout the five-year contract. By resolving the initial cash flow issue, the company is now well-positioned to handle future orders and expand its operations in government contracting.