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AR Financing in Action

AR Financing in Action

May 3, 2016 |

When taking on large projects or fulfilling major contracts, businesses often face the challenge of covering upfront costs before receiving payments. Both mobilization funding and purchase order (P/O) financing are valuable solutions that provide businesses with the...

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Urgency – We ensure approval and funding in days, not weeks.

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Integrity – Dedicated to transparency and accuracy in every aspect of our service.

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Flexibility – A private capital partner that embraces a big-picture perspective.

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Relationship – Collaborate directly with the decision-makers on your account.

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Teamwork – Together, we can achieve great things when we share a common goal.

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Optimism – Every future holds new opportunities waiting to be explored.

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Experience – Leveraging accurate information and proven techniques leads to success.

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Creativity – Hard work and experience combine to tackle challenges with innovative solutions.

Frequently Asked Questions

What's your interest rate?

We charge a fee for our services based on the number of days outstanding. Please contact a SouthStar representative to discuss your specific working capital needs.

Can you finance my purchase order?
Yes, SouthStar provides Purchase Order Financing. Please contact a SouthStar representative to discuss your specific needs.
Can we still get funding if we have a challenged credit history and a troubled balance sheet?
Our funding is based on your customer’s credit, so your credit history won’t affect our decision.
We are growing faster than our bank is comfortable with, does SouthStar have a limit on funding?
We offer you unlimited access to working capital.
We were awarded a larger project than we can financially handle, can SouthStar help with this?
We can offer working capital when you need it by advancing your outstanding invoices or financing the fulfillment of your purchase orders.
How long is the funding process at SouthStar Capital?

Our application process is fast and easy, with same-day approval. Initial funding is provided within 2-5 days and any funding thereafter is sent within 24 hours of your request.

Our company is new to business, would this be a challenge to get funding?
Years in business is not a factor in our funding decision.
Our customers have been slow in making payments. Could this be considered a valid reason to seek funding from SouthStar?
We can advance up to 90% of the amount of your outstanding invoices, so you can keep your business operating and take on new jobs. We can also finance 100% of your 3rd party purchase orders.
If my company is behind on taxes, would we still be able to get funding from SouthStar?
We will not automatically turn you down because of tax liens. Instead, we have a dedicated team that works with the IRS to negotiate a payment plan for the lien.
Could SouthStar assist with my company's payroll payment issues?
We can advance the money you have tied up in unpaid invoices, so you can make payroll on time instead of waiting to receive payment from your client.
Do I need to give up any equity in my company to receive funding?
We are able to provide working capital without acquiring equity, so you keep 100% ownership of your business.
Do I have to factor all of my invoices?

No, you can pick the customer and invoices you would like to factor.

Where does my customer send payment to?

Your customers will receive a Notice of Assignment (NOA) and will update payment remittance to a SouthStar lockbox.

Does factoring show a sign of weakness to my customers?
Invoice factoring is a well-known tool and puts businesses in a better financial position for their daily operations.
What type of industries do you finance?

SouthStar finances a wide range of industries as long as the business sells a service or a product on terms to another business.

Can you provide financing to my company based on a government purchase order or contract award?
SouthStar Capital provides short-term working capital to companies supplying goods and services to federal, state, and municipal government agencies. We achieve this through asset-based lending products like Accounts Receivable and Purchase Order Financing, as well as Mobilization Funding. While contracts or purchase orders themselves aren’t assets, the products to be resold and completed work receivables are. Additionally, assets such as real estate, vehicles, machinery, and inventory can be utilized for financing.
When will I get the money to pay my vendor?
SouthStar Capital partners with you to manage your supply chain risks. We pay your vendor directly after confirming their capabilities, product specifications, delivery methods, and other factors. This process typically takes a few days, depending on the vendor’s responsiveness.

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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