Government Contract Financing Blog

How Government Contract Financing Enabled this Small Business to Scale and Succeed

August 21, 2024

For small businesses, entering the world of government contracting can be a transformative experience, but it often requires navigating new challenges—especially when it comes to financing. A mattress manufacturer's representative with over five years of experience found herself in this exact situation when she secured a $209,000 contract to supply mattresses to the U.S. Air Force across 15 locations. This contract marked her first venture into government contracts, and while the opportunity was significant, the financial requirements posed a challenge. With a cost of goods totaling $130,000 and additional responsibilities, including recycling the old mattresses, she needed financial backing to

How a $750K Facility from SouthStar Capital Helped a Small Business Secure a Key Government Contract

August 15, 2024

When a small business specializing in government contracting was offered a prestigious opportunity to supply products for a leading school system in a western state, they faced a significant challenge. The supplier required upfront payment, but without the necessary funds, the company risked losing the contract. SouthStar Capital stepped in with a $750,000 Purchase Order/Factoring Facility, providing immediate access to the funds needed to secure the supplies. This strategic financial solution enabled the company to meet their supplier’s demands and ensure timely delivery to the school system. The result? The business successfully fulfilled the contract, reinforcing its reputation for reliability

Navigating Government Contract Financing

July 25, 2024

Securing a government contract can be a significant milestone for any business, promising steady revenue and opportunities for growth. However, winning a government contract often comes with unique financial challenges. To successfully navigate these challenges, choosing the right lender is crucial. Here at SouthStar Capital, we understand the intricacies involved in financing government contracts and are here to guide you through the process of selecting the best lender for your needs. Key Considerations When Choosing a Lender • Experience with Government Contracts Not all lenders are familiar with the specific requirements and challenges associated with government contracts. It's important to

Don’t be Fooled by Online Lenders

June 27, 2017

A Safer Option than Online Lenders. We know that business owners can get in a pinch financially and feel they need to resort to online lenders for fast cash. Many of these online lenders, such as a Merchant Cash Advance (MCA), offer quick funding with little paperwork, but this decision can have long term effects on your finances. These online lending structures may be based on your business's future sales, making it a higher risk funding option with a greater liability on your balance sheet. Many of these online options also have very high interest rates, forcing you into a

Does Making Payroll Stress You Out?

December 2, 2016

Payroll Funding may be the answer. What is Payroll Funding? Funding payroll can be a challenge without a constant source of cash flow. Even if your customers pay within 30 days, your employees likely need to be paid sooner. If your customers have longer payment terms of 45, 60, or even 90 days, Payroll Funding may be a necessity for paying your employees on time. How does Payroll Funding work? Slow paying customers, rapid growth periods, seasonal patterns, selling on credit terms, and other factors can create cash flow challenges for your business. With Payroll Funding, rather than waiting for

Government Contract Financing in Action

June 21, 2016

SouthStar Capital has a team of dedicated sales and operations personnel that specialize in providing Government Contract Financing to both Prime and Sub-Contractors for State, Federal, and Municipal government projects. Below illustrates one of the working capital solutions we recently provided through Government Contract Financing. PROBLEM: SOLUTION: RESULT: Contact SouthStar today to discuss how Government Contract Financing can directly benefit your company. CONTACT US TODAY!

Government Contract Financing with SSC

March 24, 2016

Being awarded a Government Contract is an exciting time for your business, but may also lead to the question of: How do I meet my payroll, vendor, & other obligations while the project is being completed? Our dedicated team understands the intricacies of Government Contracts & specializes in providing working capital solutions for your company's specific financing needs. Experience We have the experience of working with Prime and Sub-Contractors on financial solutions for their State, Federal, and Municipal government projects. Flexibility Our custom solutions provide our clients with the growth capital needed to fund task orders, as well as

Best Government Factoring Company for 2016

February 24, 2016

We are very excited to announce that SouthStar Capital has been awarded the "Best Government Factoring Company" for 2016 by the Factoring Club! This award was based on user feedback, factoring agreement terms and conditions, and our direct business relationship with the Factoring Club. SouthStar's Government Contract Financing At SouthStar, we have a team of dedicated experts in the area of Government Contract Financing, or Factoring. We specialize in providing working capital solutions to Prime and Sub-contractors for State, Federal and Municipal government projects. Our team is also very familiar with the Federal Assignment of Claims, as well as Contract