Small Business Funding Blog Posts

AR Finance Case Study

January 28, 2020

American Staffing, Inc. Case Study This case study shows how Accounts Receivable Financing can be used to solve the cash flow issues of a staffing company, highlighting the receivable financing problems and solutions process. To protect client privacy, we have changed some details (including their name) in this business case. Also, the numbers have been simplified to make the case study easy to understand, but the key facts and lessons remain. The Challenge American Staffing, Inc. (ASI) is a staffing company that matches large corporate clients with qualified candidates to fill open positions within the corporation. Although ASI is a

10 Questions: Is Accounts Receivable Financing right for your business?

September 10, 2019

When considering if Accounts Receivable Financing is the right solution for obtaining working capital for your business, ask yourself these 10 questions: Could you increase sales with more working capital? Do you have to scramble at the end of the week or month to cover your payroll expenses? Is your business in growth mode? Have you been turned down by a bank for financing? Do you have projects that you could be bidding if you were assured the cash flow required would be available to you? Do you have challenged financial history or personal credit issues? Do the majority of

SouthStar Capital, LLC Acquires inFactor Capital, Co.

May 15, 2019

SouthStar Capital is actively seeking portfolios in the Specialty Finance sector. SouthStar Capital is excited to announce the acquisition of the Charleston, South Carolina based company, inFactor, effective May 3rd of 2019. SouthStar acquired inFactor's factoring portfolio and commercial customer accounts, which will operate under SouthStar's brand moving forward. This acquisition offers an exciting opportunity for SouthStar to strengthen and expand its service offerings in the Factoring and Asset Based Lending sectors. Part of the portfolio included a factoring line of $10MM to one of the country's largest IT staffing and training firms. SouthStar looks forward to acquiring more Specialty

The Cost of Invoice Financing

February 4, 2019

Have you ever considered invoice financing, but thought the cost would be prohibitive? Well, maybe the question should be what is the cost of not financing your invoices? If you're turning down a large job or contract because you don't have enough working capital, think about the associated revenue your business is missing out on. Consider not just the lost opportunity cost, but also the growth opportunities your business is missing due to a lack of cash flow. With invoice financing, we advance up to 90% of your outstanding invoices, so you get the capital you need right when you

Does Your Business Have Cash Flow Problems?

October 10, 2018

SouthStar Capital takes a non-traditional approach to funding. We think outside the box and take a different perspective than many of the lending sources you may have been turned away from. We offer an alternative lending approach, where our decision is not credit driven and our qualifications are not customary. If you have exhausted your financing options, don’t give up, because we can help. The questions below address concerns we commonly hear from businesses like yours. If you answer YES to any of these questions, SouthStar Capital can provide a solution. If you had access to more working capital, could

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

5 Reasons to use Invoice Financing to Grow your Business

June 28, 2018

The 5 reasons to grow your business with Invoice Financing. ① Easier Qualification Qualifying for a bank loan can be strenuous and time consuming, especially if you have a challenged credit history. Invoice Financing is different, in that the qualification process is based on your customers’ credit, not your own. ② Get Paid Faster Why should you have to wait 30, 60, or even 90 days to get paid by your customers? Invoice Financing allows you to unlock the cash within your business immediately, making it easier to grow your business. ③ Add Flexibility Invoice Financing is a means of

Best Factoring Company of 2018

November 30, 2017

FactoringClub's 'Best Factoring Company of 2018' Award We are very excited to announce that SouthStar Capital has been awarded the 'Best Factoring Company of 2018' by the FactoringClub! This award was based on SouthStar's terms and features, customer service, location, and overall excellence. Invoice Factoring with SouthStar Whether you are an established business or just getting started, insufficient cash flow can cripple your operations and growth capabilities. Traditional institutions often do not view your company’s Accounts Receivable (invoices) for what they are, an asset! SouthStar Capital does not see through the eyes of traditional lending institutions and can turn your

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

Why Invoice Financing may be better than a Business Loan

January 9, 2017

Invoice Financing may be better for your company than a Business Loan. According to The Service Corps of Retired Executives (SCORE), 82% of start-ups and small businesses fail because owners have a poor understanding of cash-flow management and lack the ability to access working capital needed for growth. One funding option that is often overlooked is invoice financing. This alternative lending method does not have the same strenuous requirement process as a traditional business loan. The main qualification is that a company has customers with outstanding invoices that are paid on terms. Below, we will take a look at why