Small Business Funding Blog Posts

How a Factoring Facility Transformed a Cybersecurity Integration Company

October 10, 2024

A cybersecurity integration company recently secured a $260,000 contract with the Defense Finance and Accounting Service (DFAS) for a security camera upgrade at a Joint Base. The project required sourcing components from multiple vendors and integrating them with the existing system. Despite having the skills and experience to handle the project, the company encountered a significant roadblock when a new vendor refused to extend credit, resulting in a $130,000 upfront cost. This financial strain threatened the project's success. The Challenge The cybersecurity company needed to pay a new vendor $130,000 upfront while managing payment terms with other vendors. The lack

The Benefits of Working with a Private Lender

September 13, 2024

In the world of business, one size rarely fits all. Every company has unique financial needs and challenges that require tailored solutions. This is where private financing companies, like SouthStar Capital, excel. As a private lender, we offer unparalleled flexibility and customized financial solutions designed specifically to meet your business needs. Here’s why partnering with a private financing company can be a game-changer for your business. Tailored Financing Solutions At SouthStar Capital, we understand that every business is unique. Whether you need Invoice Factoring, Purchase Order Financing, Accounts Receivable Financing, our solutions are designed to fit your specific circumstances. Hands-On

In-House Underwriting at SouthStar: How It Speeds Up Funding for Your Business

August 8, 2024

In today's fast-paced business environment, securing timely funding can be the difference between seizing a growth opportunity and missing it entirely. At SouthStar Capital, we understand the importance of rapid access to funds, which is why we conduct our underwriting in-house. This approach allows us to expedite the funding process, typically providing the necessary capital in just 2-5 days. Here's how our in-house underwriting can benefit your business. • Streamlined Process Traditional funding methods often involve lengthy procedures and multiple external parties, leading to delays and inefficiencies. At SouthStar, our in-house underwriting team eliminates these bottlenecks. By handling every step

Why Business Experience Isn’t Everything in Funding Decisions

July 31, 2024

When it comes to securing funding, many business owners worry that their credit history or lack of extensive financial performance might hinder their chances. At SouthStar Capital, we take a different approach, focusing on the creditworthiness of your customers rather than your own business history. Here’s why business experience isn’t everything in our funding decisions. • Customer Credit Matters Most Unlike traditional lenders, we prioritize the credit quality of your customers. This means your credit history isn’t a significant factor in our decision-making process. If your customers have strong credit, you can secure the funding you need, regardless of your

How to Choose the Best Factoring Company for Your Business

July 12, 2024

Running a business comes with its own set of financial challenges, one of which is maintaining a healthy cash flow. When customers delay payments, it can put a strain on your operations, making it difficult to pay suppliers, meet payroll, or invest in growth. This is where factoring companies come in. They can transform your outstanding invoices into immediate cash and take on the responsibility of collecting from your customers. But how do you choose the best factoring company for your business? Here’s a comprehensive guide to help you make the right decision. 1. Understand Your Needs Before you start

When the Bank Says No: Exploring Alternative Financing with SouthStar Capital

July 5, 2024

In the journey of entrepreneurship, facing hurdles is inevitable. One significant roadblock many businesses encounter is being denied a loan by traditional banks. It's a scenario that can feel discouraging and frustrating, but it doesn't have to be the end of the road. When one door closes, another opens, and in the world of finance, that door often leads to alternative lending solutions. As a leader in the alternative finance industry, SouthStar Capital specializes in providing financing solutions tailored to the unique needs of businesses, offering a lifeline when conventional avenues fall short. So, what sets SouthStar Capital apart from

How to Talk to Your Customers About Factoring

March 10, 2022

Customer reaction is a concern for many business owners who are considering Invoice Factoring as a finance strategy. While you may be worried that your customers will view this relationship as a weakness, establishing a line of credit is actually a positive statement that shows your business is growing and has a stable financial backing to support your growth. Factoring also allows you to extend longer payment terms, an additional benefit to your clients. Leveraging your accounts receivable to generate cash is a financing method used by very large corporations worldwide, such as Shell Oil, Georgia Pacific, and IBM. It

Best Factoring Company of 2021

January 28, 2021

FactoringClub's 'Best Factoring Company of 2021' Award Winner We are excited to announce that SouthStar Capital has been awarded 'Best Factoring Company of 2021' by the FactoringClub! This award is based on SouthStar's integrity, value, proven track-record, quality service, personal care, and passion. SouthStar Capital provides factoring solutions to businesses nationwide. Their wide range of growth capital products, outside the box thinking, and private capital structure allow for creative funding solutions that few can match. SouthStar knows the importance of delivering working capital in a fast and timely manner, so you deal directly with decision makers, in turn streamlining your

Keep your business financially afloat through COVID-19

March 31, 2020

During these trying times, we understand the uncertainty you may feel about your business and its future. Unfortunately, a business in financial distress can quickly discover that their options for financing are limited. Financial partners eager for business when times were good, often offer few solutions when challenges arise. SouthStar Capital wants to offer financial support through this ordeal. If you are unable to make your payroll or cover operating expenses during the Coronavirus quarantine, we may be able to help. SouthStar offers a wide range of funding products, allowing us to customize the right solution to keep your business

AR Finance Case Study

January 28, 2020

American Staffing, Inc. Case Study This case study shows how Accounts Receivable Financing can be used to solve the cash flow issues of a staffing company, highlighting the receivable financing problems and solutions process. To protect client privacy, we have changed some details (including their name) in this business case. Also, the numbers have been simplified to make the case study easy to understand, but the key facts and lessons remain. The Challenge American Staffing, Inc. (ASI) is a staffing company that matches large corporate clients with qualified candidates to fill open positions within the corporation. Although ASI is a