In the competitive construction industry, maintaining steady cash flow is crucial for growth and operations. A Maryland-based construction company faced a significant cash flow challenge with $97,734 in open accounts receivable and another $400,000 in work-in-progress. To sustain operations and capitalize on new opportunities, they needed immediate funding. That’s where SouthStar Capital stepped in with a solution.
The Challenge
The construction company needed to accelerate their cash flow to keep up with ongoing projects and operational expenses. With nearly $100,000 in open accounts receivable and a substantial amount of work-in-progress, they faced a cash flow crunch that threatened their ability to continue operations and pursue growth.
The Solution
SouthStar Capital provided a $500,000 Invoice Factoring facility tailored to the company’s needs. This financing solution allowed the business to leverage their open accounts receivables, converting them into immediate cash. This bypassed the waiting period for invoice payments and provided the necessary funds to sustain their operations.
The Result
- Sustained Operations: The immediate influx of capital ensured that the company could meet its operational expenses and avoid disruptions in their projects.
- Accelerated Cash Flow: By leveraging their accounts receivables, the company maintained a steady cash flow, which is crucial for day-to-day operations.
- Growth Opportunities: Financial stability allowed the company to seize new opportunities and drive growth, maintaining momentum in the competitive construction industry.
- Strategic Investment: The funds provided the flexibility to invest in new projects and resources, positioning the company for long-term success.
With SouthStar Capital’s $500,000 Invoice Factoring financing facility, the Maryland-based construction company effectively addressed their cash flow challenges and positioned themselves for continued growth. This case underscores how innovative financing solutions can offer immediate financial relief and support sustained business success.
Learn more on how to grow your business with Invoice Factoring financing.