Invoice
Factoring
Struggling with Cash Flow? Let SouthStar Capital Help!
What is Invoice Factoring?
Invoice factoring is a powerful financing solution that allows businesses to generate cash flow by leveraging their outstanding invoices. Instead of waiting 30, 60, or even 90 days for customers to pay, factoring enables you to receive immediate working capital from a third-party commercial finance company like SouthStar Capital.
When you factor with SouthStar, we advance up to 90% of the value of your invoices within 24 hours of receiving an invoice, freeing up cash flow to handle operational expenses such as payroll, inventory purchases, and business growth. Factoring is not a loan—there’s no debt added to your balance sheet, and the funds are unrestricted, so you can use them however you choose.
Unlike traditional lenders, SouthStar Capital focuses on your customer’s creditworthiness—not your business or personal credit history—ensuring that your ability to access capital is based on your client’s strengths.
Why Choose Invoice Factoring?
- Immediate Working Capital: You will be paid in 24 hours, not 30, 60, or 90 days, giving you access to funds to cover payroll, inventory, and growth opportunities.
- No Debt on Your Balance Sheet: Factoring is not a loan, so that it won’t add debt to your balance sheet. The funds you receive are considered a sale of your accounts receivable, not a loan.
- Focus on Your Customers’ Credit, Not Yours: Unlike traditional lenders, we focus on your customers’ creditworthiness—not your personal or business credit scores—making factoring a viable solution even for businesses with challenged credit.
- Flexibility: Factoring is available whenever you generate new invoices, so your working capital can grow as your business does without the limits of traditional financing.
- Back-Office Support: SouthStar Capital handles collections and customer communications, allowing you to focus more on running your business while we manage your receivables.
- Ideal for Growth and Seasonality: Invoice factoring is an excellent option for businesses that experience seasonal fluctuations, fast growth, or struggle with slow-paying clients.
- Simple and Transparent: The factoring process is clear and straightforward, with no hidden fees. You know exactly how much you’ll receive and when.
- Keep 100% Ownership: Factoring allows you to retain full ownership of your business. You don’t need to give up equity to get the cash flow you need.
Invoice factoring is a reliable alternative to traditional bank loans or lines of credit. Unlike a bank loan, which can take weeks to secure and often requires strong credit and collateral, invoice factoring is fast, flexible, and accessible to businesses of all sizes. With SouthStar Capital, you can get the working capital you need based on your customer’s credit, not your creditworthiness.
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SouthStar Advantage
Invoice Factoring
Fast Cash Flow—Access the cash tied up in your invoices quickly.
Flexible—Focused on the invoice and debtor account quality.
How Invoice Factoring Works
Here’s how the process works when you partner with SouthStar Capital for invoice factoring. This process allows businesses to maintain a steady cash flow without the delays caused by slow-paying customers or seasonal fluctuations.
Generate an Invoice
Submit for Factoring
Verification and Advance
Customer Pays
Final Payment
Once SouthStar receives payment, we will remit the remaining balance back to you, minus a small factoring fee.
Repeat as Needed
Who Can Benefit from Invoice Factoring?
- Businesses with Slow-Paying Clients: Invoice factoring allows you to access cash quickly without waiting for payments to arrive if your clients pay on extended terms.
- Businesses Experiencing Rapid Growth: Factoring provides the flexibility to fund your operations and growth without being limited by slow receivables.
- Seasonal Businesses: Businesses with seasonal cycles can use invoice factoring to smooth out cash flow throughout the year.
- Small to Medium-Sized Businesses: If you’re just starting or are in the early stages of growth, invoice factoring can provide the necessary capital to help your business succeed without the stringent requirements of traditional loans.
SouthStar Advantage
Invoice Factoring
Smart—Avoid long-term debt burdens and let your growth pay for itself.
What Our Clients Say
We approached SouthStar because our accountant highly recommended them, but we expected a turndown as we were behind with the IRS. To our surprise, SouthStar assisted in structuring a payment plan with the IRS and offered us a Receivables Line!
My business was literally month-to-month. My business partner and I would sit down with the finances and discuss closing the doors… Our customers’ slow pay held our cash flow for ransom. The day my SouthStar rep walked through our door was the day our business turned around. Now, we have the cash we need to deliver projects on time.
I am a small business owner with limited working capital. My workload increases 200% in the summer. SouthStar allows me to pay my employees on time without waiting for my net 30 invoices to be paid. They are a lifesaver. Customer service is exemplary. Any questions I have had are handled efficiently and expeditiously. I am a satisfied customer!
We had the opportunity to bid on a huge project that our competitor dropped the ball on. We needed access to cash to staff up and prepare to handle this opportunity. I went to my bank and others, and I was turned down. They didn’t like the fact that we had negative growth in the last year. Never mind that we had double-digit growth for the previous 8 years! After being turned down by five banks, we accepted the fact that we would have to pass on the project. Then SouthStar Capital met with us and put together a finance strategy for getting us the cash we needed. We won the project and are on track for our most profitable year in 9 years!
SouthStar Capital provides a useful, cost-effective service for small businesses that need to maintain cash flow while waiting for customers to process payments through their system. It’s an easy process that comes in handy when the workload is heavy and requires capital, but payments for services already rendered are still in receivables. If you find yourself with money owed but low funds in the bank to handle new projects or purchase new materials, give them a call, and one of their friendly, professional representatives will guide you through the process. This is not a paid-for ad…. I really did write this and mean it.