SouthStar is excited to announce a recently closed transaction
$1,000,000 Receivables Line Coupled With a $500,000 Purchase Order Line Fuels Growth for a Manufacturing Company in Florida
Challenge
The Manufacturing Company recently brought an exciting new product line to market which resulted in sales increasing by 100% month over month over month! In order to keep up with demand the Client utilized what cash they had in the bank to buy more equipment to keep up. While this was great it left them with little to no money to pay suppliers which left them with great potential and many orders but no raw goods to create a finished product. To make matter worse they did not have terms with their suppliers as they have only been in business for 6 months and their existing Financing company was not willing to deviate outside of the box.
Solution
SouthStar examined the company as a whole and took into account all asset classes to include equipment, accounts receivable and purchase orders. SouthStar offered a large Receivables Line that will helped the company reach its potential and also collateralized the equipment of the Company in order to offer a $500,000 purchase order line to assist with purchasing raw goods and funding payroll.
Results
Cash is no longer an issue and the Company can focus on sales and operations not on how they are going to fund their day to day operations.
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McLean WilsonVice President SouthStar Capital
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SouthStar Capital, LLC 830 Lowcountry Blvd. Ste. 201 Mt. Pleasant SC 29464 |
Tel: (843) 277-6417www.southstarcapital.com mwilson@southstarcapital.com
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