SouthStar Capital Empowers Startup to Fulfill $112K Purchase Order for City of Asheville, Paving the Way for Future Growth

The Situation
A newly formed wholesale hardware distribution company, established in 2022, secured its first significant purchase order (P/O) from the City of Asheville, valued at $112,438. The client, who retired last year from an HR position with the State of North Carolina, transitioned to bidding full-time.
Despite having no prior revenue, the client successfully won this award. The order consists of three Toyota Rav 4 SUVs, complete with all-weather mats, with the cost of goods sold (COGS) totaling $96,277 from Leith Toyota, including delivery. Two sets of mats are currently in stock, with the third set needing to be ordered. The delivery deadline is set for July 29, 2024.
The Solution
SouthStar Capital provided the necessary financial support to fulfill this purchase order. By offering a tailored P/O financing solution, SouthStar Capital ensured that the client could cover the COGS and manage to procure the required vehicles and accessories. This $250,000 facility allowed the client to maintain a 14% gross margin on the deal and meet the delivery deadline without disruptions.
The Result
With support from SouthStar Capital, the client successfully fulfilled the $112,438 order for the City of Asheville, delivering the three Toyota Rav 4 SUVs. This financial solution enabled the client to complete their first significant deal and positioned them for future growth and opportunities. The order’s timely delivery and efficient management underscored the client’s potential for success in their new venture.