What is Accounts Receivable Financing?

Whether you are an established business or just getting started, insufficient cash flow can cripple your operations and growth capabilities. Traditional institutions often do not view your company’s Accounts Receivable for what they are, an asset! SouthStar Capital does not see through the eyes of traditional lending institutions and can turn your Accounts Receivable into working capital. This takes away the concern of making payroll, paying vendors/suppliers, and securing growth capital. Your only concern should be producing a product or performing a service, not having to chase clients to meet everyday expenses. Let SouthStar turn your Accounts Receivable into a Line of Credit by using your invoices as collateral.

How does Accounts Receivable Financing work?

Once you generate an invoice, SouthStar goes to work for you. We begin by verifying the submitted invoice(s) and advancing up to 90% of the total value of the invoice(s). SouthStar is concerned with the credit quality of your clients (account debtors) and not your personal or business credit scores. Working capital will arrive in your bank account within 24 hours. Once your client has sent payment for the invoice(s), SouthStar will charge a financing fee and remit the balance back to you. We can repeat this process as often as you can generate an invoice

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Accounts Receivable Financing

The 5 Steps of AR Financing

  1. You provide products or services to another creditworthy business on terms.
  2. You send the invoice to your customer and send the invoice, along with any support documentation (i.e. purchase orders, contracts, etc.), to SouthStar Capital.
  3. SouthStar will verify the invoice then advance a portion of the invoice directly to you, typically 70% to 90%.
  4. Your customer then pays the invoice by ACH, wire transfer, or a check made out to your company, but sent SouthStar Capital’s address.
  5. SouthStar then sends you the invoice balance, less our fee. We can repeat this process as often as you generate an invoice.
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The SouthStar Advantage

  • Same day approval/closing in 2-5 days
  • Working capital is sent within 24 hours of receiving invoice
  • Deal directly with decision makers
  • No maximums for monthly receivables
  • No debt is added to your balance sheet
  • Challenged credit is a non-issue
  • Years in business is not a factor
  • Assigned account team for your company
  • No equity required, keep 100% ownership of your business
  • Save time and money with a third party handling day-to-day accounts receivable
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What to Expect with Accounts Receivable Financing

When funding your invoices with SouthStar, you will be assigned a personal account manager who will handle collections, payment processing, and customer credit approvals, allowing you to focus on your business. With Accounts Receivable Financing, we look at the credit history of your customer, not your company or personal credit history.

Years in business is not a factor in our decision to finance, making AR Financing great for start-ups. Once established with SouthStar, you will receive same-day funding on submitted invoices. This gives you access to unlimited working capital, right when you need it. Receivables Financing also allows you to extend longer payment terms to clients and grow your business.

Accounts Receivable Financing

Find out what our clients are saying about Accounts Receivable Financing with SouthStar Capital. Plus, real life success stories on business growth with AR Financing.

Accounts Receivable Financing

When considering if Accounts Receivable Finance is the right solution for obtaining working capital for your business, ask yourself these 10 questions.

AR Finance Case Study

In this case study, find out how one company went from a cash deficit to nearly doubling their business with AR Financing.

“They had all the answers to our questions, and their rates were very reasonable. Long story short, we won the project and are on track for our most profitable year in 9 years!”

– Doug, Owner of a Steel Fabrication Plant