HOW DOES FACTORING WORK?

Accounts Receivable Financing

How does Invoice Factoring work?

  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 percent.
  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.
Accounts Receivable Financing

How does Invoice Factoring work?

  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 percent.
  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.
Factoring

Learn what Invoice Factoring is, how it can benefit your business, and the advantages of working with SouthStar Capital.

Factoring Example

Find out what our clients are saying about Factoring with SouthStar Capital. Plus, real life success stories on business growth with Invoice Factoring.

History of Factoring

Factoring goes as far back as Babylonian times! Follow how factoring has changed through time and become a present day form of alternative lending.

Factoring vs Loan

Find out what sets Invoice Factoring apart from a business loan and why factoring may be the better option for your business.

“I was skeptical about factoring because of some horror stories I’ve heard from some of my business associates. From the moment I spoke to my Account Executive at SouthStar, my concerns were put to rest. They were knowledgeable, honest and I couldn’t believe how easy it was.”

– Martina, CFO for an Industrial Manufacturer