Purchase Order Financing Blog - SouthStar Capital

How a $750K Facility from SouthStar Capital Helped a Small Business Secure a Key Government Contract

August 15, 2024

When a small business specializing in government contracting was offered a prestigious opportunity to supply products for a leading school system in a western state, they faced a significant challenge. The supplier required upfront payment, but without the necessary funds, the company risked losing the contract. SouthStar Capital stepped in with a $750,000 Purchase Order/Factoring Facility, providing immediate access to the funds needed to secure the supplies. This strategic financial solution enabled the company to meet their supplier’s demands and ensure timely delivery to the school system. The result? The business successfully fulfilled the contract, reinforcing its reputation for reliability

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

Is Purchase Order Financing Right for You?

July 8, 2016

When you are considering if Purchase Order Financing is the right solution for obtaining Working Capital for your business, ask yourself the following questions: Do you have a purchase order from a quality company? Are you in startup mode? If so, do you have a perfected prototype of your product? Do you have a 3rd party manufacturing facility set up? Have you been turned down by a bank for financing? Do you have orders that you could fulfill if you could afford to have the products made and shipped? Do you have weak company financials? Do you have personal credit

Recent Funding Solution from SouthStar

June 9, 2016

SouthStar Capital specializes in providing custom funding solutions to businesses in need of working capital. Here is just one of the funding solutions we provided in the month of May. Contact us today for a brief conversation to learn more about SouthStar Capital's products and how we can customize a solution for you business's capital needs. CONTACT US TODAY!

Purchase Order Financing in Action

May 24, 2016

Below illustrates one of the working capital solutions we recently provided through Purchase Order Financing. PROBLEM: SOLUTION: RESULT: Contact SouthStar today to learn more about the benefits of Purchase Order Financing. CONTACT US TODAY!

How does Purchase Order Financing Work?

March 9, 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 Purchase Order Financing and many of our other products. First, you obtain a Purchase Order from a quality company that has agreed to accept your product or service. Once the Purchase Order is received, you send it over to SouthStar. SouthStar will then perform due diligence on your customer to ensure they are credit worthy and have a history of paying once the product is received. SouthStar will also confirm that the

Commercial Hard Money Loans & Alternatives

October 28, 2013

With the tightening of business credit, companies are struggling to make ends meet amid a backdrop of uncertainty. Companies are taking longer to pay invoices and the effects are reverberating throughout the global economy. Banks raise interest rates and businesses are left to deal with the consequences. However, there are credit alternatives that allow companies to assume a more hands-on approach to financing their business. They include asset-based lending practices and the most common ABL financing vehicles are purchase order financing, and accounts receivables factoring. Both options empower businesses to take charge of their capital requirements and are a much

Purchase Order Financing For Small Businesses

August 28, 2013

Small business owners know that having issues with cash flow, while trying to fulfill existing customer orders, is never an easy endeavor. The customer is impressed and wants product, but the small business lacks the funds to not only purchase the raw materials, but to pay for the work needed to complete the customer’s order. Because of their uneven cash flow the small business is left with a large customer order they can’t even start! Is there a solution to such a problem? In fact, there is. It comes in the form of purchase order financing. So, what is purchase