Understanding Factoring/A/R Financing: A Quick Guide in 5 Simple Steps

Have you ever wondered how factoring works and how it can benefit your business? Let’s break it down into five easy steps:
- Provide Your Service: You provide a service or deliver goods to your customers as usual. This could be anything from completing a project to supplying products.
- Submit Your Invoice: Once the service is provided, send your invoice to SouthStar Capital.
- Receive Cash Advance: SouthStar Capital provides you funding upon receiving your invoice, typically within 24 hours. This immediate infusion of cash allows you to meet your immediate financial needs, whether covering expenses or investing in growth opportunities.
- Collection Process: SouthStar Capital is responsible for collecting payment from your customer. They handle the communication and follow-up, ensuring timely payment and saving you money by collecting faster.
- Final Payment: Once your customer pays the invoice in full, SouthStar Capital deducts a small fee for their services and forwards you the remaining amount.
In summary, factoring is a simple and effective way for businesses to access immediate cash flow and streamline their accounts receivable process. By partnering with SouthStar Capital, you can enjoy the benefits of factoring and focusing on what you do best—growing your business.