Small Business Funding Blog Posts

Is Equipment Leasing Right for You?

August 3, 2016

In thinking about whether Leasing is the right solution for obtaining Equipment for your business, ask yourself the following questions: Will depleting your available cash put your business in a defensive position? Does technology increase rapidly in your industry, rendering equipment obsolete in three to five years? Do you want to gain a variety of tax benefits? Would you like to get a more expensive piece of equipment, but are concerned about spending additional cash to do so? Do you want to preserve your cash flow? Do you want to have flexibility in how long you will make payments on

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

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!

The History of Factoring

April 14, 2016

Factoring is an ancient function found as far back as Babylonian times. The Babylonian Code of Hammurabi covered certain trade practices of merchants' agents who guaranteed trade credits. This was the earliest recorded factoring. A Factor in early European history was defined as a representative, who looked after someone else's business affairs. A noble lord would not conduct business transactions directly with those considered beneath them and the Factor would act as go between. The Factor would convey contracts, collect and disburse funds and see to transporting goods. Prior to the 20th century, a Factor was a business agent whose

The SouthStar Funding Process

April 6, 2016

How does Accounts Receivable Financing Work? You provide products or services to another creditworthy business on terms. You send the invoice to your customer and send the invoice, along with any support documentation (i.e. purchase orders, contracts, etc.) to SouthStar Capital. SouthStar will verify the invoice then advance a portion of the invoice directly to you, typically 70 to 90 percent. Your customer then pays the invoice by ACH, wire transfer, or a check made out to your company, but sent SouthStar Capital's address. SouthStar then sends you the invoice balance, less our fee. Contact us today to learn more

The 5 Types of Equipment Leases

March 29, 2016

Capital Lease / Finance Lease / $1 Buyout May also be referred to as a nominal or ($1) dollar-buyout lease. These leases share the advantage of fixed monthly payments, but with the guaranteed option to purchase the equipment for a nominal price at the conclusion of the lease. With this type of lease there is no uncertainty about the value of the equipment at the conclusion of the lease as the buyout terms are generally a part of the initial agreement. Finance type lease may not qualify under I.R.S. regulations for deductibility. The lessee is considered the owner of the

Government Contract Financing with SSC

March 24, 2016

Being awarded a Government Contract is an exciting time for your business, but may also lead to the question of: How do I meet my payroll, vendor, & other obligations while the project is being completed? Our dedicated team understands the intricacies of Government Contracts & specializes in providing working capital solutions for your company's specific financing needs. Experience We have the experience of working with Prime and Sub-Contractors on financial solutions for their State, Federal, and Municipal government projects. Flexibility Our custom solutions provide our clients with the growth capital needed to fund task orders, as well as

The SouthStar Advantage

March 11, 2016

Non-Traditional Approach Our credit decision is based on your company’s assets, not past financial performance or time in business. Our in-house Underwriting allows for quick funding, typically in 2-5 days. Our diverse product mix allows you the flexibility to select what most benefits your business. We are a private company allowing for customizable solutions in your company's best interest. We work with both Tax Liens and Balance Sheet issues. Grow with Confidence We prescreen potential clients of yours allowing, you to better understand their strengths, payment habits, and credit worthiness. We do not impose limits on our clients, so your

Your Business needs Cash Flow, but You have Poor Credit…Now What?

February 23, 2016

Many business owners go through the struggle of having a sufficient amount of working capital to keep their company up and running. The typical solution to this problem is taking out a bank loan to support their company through the rough patch. But what are the options when they have a limited or challenged credit history? While banks can be an aid to businesses, having credit issues will most likely result in being turned down for the loan. The Good News The good news is that there’s an alternative solution know as Accounts Receivable Financing. AR Financing takes a business’s