Distributors
Working Capital
When You Need It
No matter your industry focus, invoice factoring is a profitable financial strategy that can significantly grow your sales and maximize your revenue. As a leader among financing companies, SouthStar understands distributors’ working capital needs.
Distributors must carefully manage payables and receivables to keep operations running smoothly and maintain healthy cash flow. With SouthStar’s flexible invoice factoring solutions, distributors across industries can access working capital fast—without giving up equity or jumping through the hoops of a traditional bank loan. Our facilities scale with your business, offer transparent pricing with no hidden fees, and give you 24/7 control through our client portal. It’s a seamless, strategic way to unlock the cash tied up in your receivables.
Get the cash you need!
Frequently Asked Questions Distributors
How does invoice factoring work for distributors?
Invoice factoring allows distributors to turn unpaid customer invoices into working capital. After you deliver products and issue an eligible invoice, SouthStar Capital advances a portion of its value. When your customer pays, you receive the remaining balance, less applicable fees. This helps bridge the gap between paying suppliers and collecting customer payments.
Can distributor financing help with Net 30, Net 60, or Net 90 payment terms?
Yes. Accounts receivable financing helps distributors access cash tied up in eligible invoices while customers take 30, 60, or 90 days to pay. That working capital can help cover supplier payments, inventory purchases, payroll, and shipping costs. Eligibility depends on your customers’ creditworthiness, invoice terms, and facility structure.
Can SouthStar Capital finance purchase orders for distributors?
Yes. SouthStar Capital offers purchase order financing to help distributors cover supplier costs associated with approved customer orders. This can help your business fulfill larger orders without using all its available cash. Purchase order financing can also be combined with accounts receivable financing to support the cycle from supplier payment through customer collection.
Can a growing distribution company qualify for financing without a long operating history?
A limited operating history does not automatically prevent a distributor from qualifying for financing. SouthStar Capital evaluates factors such as your customers’ creditworthiness, eligible receivables, and the underlying transaction. This approach can help newer distribution companies access working capital to fulfill orders and support growth.
Can distributors use invoice factoring while keeping their existing bank relationship?
In some cases, yes. SouthStar Capital can work with an existing lender to explore an accounts receivable carve-out, allowing specific receivables to support a separate financing facility. This may help distributors access additional working capital while maintaining their banking relationship, subject to lender agreements and lien requirements.
Trusted
SouthStar Capital has played a pivotal role in the success of my staffing agency. Their unwavering support in providing the necessary working capital has empowered us to stand toe-to-toe with industry giants, enabling us to pursue contracts with unwavering confidence to deliver on our commitments.
Albert Williams
The entire team is committed to communicating throughout the entire application, underwriting & funding process. The funding User Interface is simplified to expedite the transfer of funds, review previous transactions, and download reports for accounting purposes.
David Hill
I have had a great experience working with SouthStar. I'm a government contractor and they positively impact my business and cashflow. Brian was my first point of contact and he has been knowledgeable and diligent. Now, David is my account manager and the experience is still great!
Steve Kamguia