Asset Based Lending Blog Posts

The Benefits of Working with a Private Lender

September 13, 2024

In the world of business, one size rarely fits all. Every company has unique financial needs and challenges that require tailored solutions. This is where private financing companies, like SouthStar Capital, excel. As a private lender, we offer unparalleled flexibility and customized financial solutions designed specifically to meet your business needs. Here’s why partnering with a private financing company can be a game-changer for your business. Tailored Financing Solutions At SouthStar Capital, we understand that every business is unique. Whether you need Invoice Factoring, Purchase Order Financing, Accounts Receivable Financing, our solutions are designed to fit your specific circumstances. Hands-On

3 Ways a Line of Credit can Benefit your Business

August 8, 2018

The 3 benefits a Line of Credit can bring your business. ① It's a security blanket for your business. Your line of credit is always there when you need extra cash. Plus, a LOC is flexible, giving you the ability to be more flexible about your business decisions. ② You can use a line of credit for almost any business need. That includes making payroll, ordering more inventory, purchasing equipment, hiring staff, or just getting through a slump when business is slow. ③ It can help you build your business credit score. Although we don't base our funding decision on

Don’t be Fooled by Online Lenders

June 27, 2017

A Safer Option than Online Lenders. We know that business owners can get in a pinch financially and feel they need to resort to online lenders for fast cash. Many of these online lenders, such as a Merchant Cash Advance (MCA), offer quick funding with little paperwork, but this decision can have long term effects on your finances. These online lending structures may be based on your business's future sales, making it a higher risk funding option with a greater liability on your balance sheet. Many of these online options also have very high interest rates, forcing you into a

Your Business May Be at Risk of Growing to Death

October 26, 2016

Growth is usually viewed as a positive step for business owners, but if not managed properly, growth could be the death of your business. If your business grows too fast, or grows the wrong way, you can actually grow yourself out of business. Along with growth comes the costs of additional staff, system development, and changes in operations. Without access to working capital, your business won't be able to support these essential changes. By tapping into your business's Accounts Receivable, or outstanding invoices, you can free up existing capital and have access to the immediate cash flow needed for growth.

How You Can Be a ‘Shark Tank’ Winner

September 13, 2016

Getting the chance to be on the reality show 'Shark Tank' can be a huge opportunity for any business. Having a great idea and company can only get you so far if you lack the working capital to grow. What if we told you that SouthStar Capital can provide the same benefits as the show 'Shark Tank', but our version is even better? We can provide your business with the capital needed for growth, but we do not require any equity within your company. Instead, we use the existing assets you already own and turn them into working capital. In-turn,

Types of Collateral

August 30, 2016

You may have business collateral and not even realize it... When looking for a source of capital, there are several factors your lender may take into consideration. For instance, traditional lenders will first look at your company's credit history, balance sheet strength, and years in business when underwriting a loan. This way of thinking leads to many businesses being turned down and not receiving the funding they need. SouthStar Capital takes a non-traditional approach and uses your business's assets, or collateral, to make our funding decision. In-turn we are able advance your business capital by using your collateral as leverage.

How does an Asset Based Line of Credit Work?

July 14, 2016

Asset Based Lines of Credit allow you to borrow a percentage of your Accounts Receivable, Equipment, and Inventory. All or one of these assets may be utilized in an Asset Based Line of Credit. Find out below how your current assets can assist your company in obtaining the capital it needs. Asset-Based Line of Credit with Accounts Receivable Financing: Your company provides a product or service to your customer. You provide SouthStar with an aged accounts receivable and payable summary. SouthStar will set up an open line of credit up to 85% of the qualifying outstanding receivables. Your customer submits

Asset Based Lending vs Bank Financing

April 11, 2016

Asset-based lines of credit refer to loans secured by a wide variety of assets such as accounts receivable, equipment, and inventory. Asset-based lenders rely on the value of the underlying collateral to minimize the loan's credit risk. Asset-based lenders are sometimes referred to as Secured Lenders. The primary difference between asset-based lending and traditional bank lending is what the lender looks to when underwriting a loan. A traditional lender will look first to the cash flow then to collateral. An asset-based lender looks to collateral first. Since traditional lenders underwrite cash flow as their primary repayment source, they typically require

Is Asset Based Lending Right for You?

March 1, 2016

At SouthStar Capital, we are dedicated to structuring a financing package that benefits your company today and in the future. SouthStar can tailor fit a financing solution involving an Asset-Based Line of Credit, along with many of our other products. In thinking about whether Asset-Based Lending is the right solution for obtaining working capital for your business, ask yourself the following questions: Is your business in growth mode? Will your bank not increase your current line of credit therefore not allowing your company to grow? Do you need additional working capital beyond what you currently have at your disposal? Have

Keep your Company’s Cash Flowing through a Seasonal Slump

February 11, 2016

If you are a business owner, it is very likely that your business has experienced a sales slump at some point in its lifetime. Some of these slumps may even be seasonal and have a predictable “slow” time of year. The good news is that maxing out credit cards or taking out a second mortgage doesn’t have to be the answer to getting through the downswing. By using the assets your company already possesses, you are able to create working capital for your business to thrive and grow. SouthStar Capital offers the alternative financing solution of Asset Based Lending. Where