Small Business Funding Blog Posts

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

10 Questions: Is Accounts Receivable Financing right for your business?

September 10, 2019

When considering if Accounts Receivable Financing is the right solution for obtaining working capital for your business, ask yourself these 10 questions: Could you increase sales with more working capital? Do you have to scramble at the end of the week or month to cover your payroll expenses? Is your business in growth mode? Have you been turned down by a bank for financing? Do you have projects that you could be bidding if you were assured the cash flow required would be available to you? Do you have challenged financial history or personal credit issues? Do the majority of

SouthStar Capital, LLC Acquires inFactor Capital, Co.

May 15, 2019

SouthStar Capital is actively seeking portfolios in the Specialty Finance sector. SouthStar Capital is excited to announce the acquisition of the Charleston, South Carolina based company, inFactor, effective May 3rd of 2019. SouthStar acquired inFactor's factoring portfolio and commercial customer accounts, which will operate under SouthStar's brand moving forward. This acquisition offers an exciting opportunity for SouthStar to strengthen and expand its service offerings in the Factoring and Asset Based Lending sectors. Part of the portfolio included a factoring line of $10MM to one of the country's largest IT staffing and training firms. SouthStar looks forward to acquiring more Specialty

The Cost of Invoice Financing

February 4, 2019

Have you ever considered invoice financing, but thought the cost would be prohibitive? Well, maybe the question should be what is the cost of not financing your invoices? If you're turning down a large job or contract because you don't have enough working capital, think about the associated revenue your business is missing out on. Consider not just the lost opportunity cost, but also the growth opportunities your business is missing due to a lack of cash flow. With invoice financing, we advance up to 90% of your outstanding invoices, so you get the capital you need right when you

Does Your Business Have Cash Flow Problems?

October 10, 2018

SouthStar Capital takes a non-traditional approach to funding. We think outside the box and take a different perspective than many of the lending sources you may have been turned away from. We offer an alternative lending approach, where our decision is not credit driven and our qualifications are not customary. If you have exhausted your financing options, don’t give up, because we can help. The questions below address concerns we commonly hear from businesses like yours. If you answer YES to any of these questions, SouthStar Capital can provide a solution. If you had access to more working capital, could

3 Ways a Line of Credit can Benefit your Business

August 8, 2018

The 3 benefits a Line of Credit can bring your business. ① It's a security blanket for your business. Your line of credit is always there when you need extra cash. Plus, a LOC is flexible, giving you the ability to be more flexible about your business decisions. ② You can use a line of credit for almost any business need. That includes making payroll, ordering more inventory, purchasing equipment, hiring staff, or just getting through a slump when business is slow. ③ It can help you build your business credit score. Although we don't base our funding decision on

5 Reasons to use Invoice Financing to Grow your Business

June 28, 2018

The 5 reasons to grow your business with Invoice Financing. ① Easier Qualification Qualifying for a bank loan can be strenuous and time consuming, especially if you have a challenged credit history. Invoice Financing is different, in that the qualification process is based on your customers’ credit, not your own. ② Get Paid Faster Why should you have to wait 30, 60, or even 90 days to get paid by your customers? Invoice Financing allows you to unlock the cash within your business immediately, making it easier to grow your business. ③ Add Flexibility Invoice Financing is a means of