Invoice Factoring Blog Post Archives

5 Ways Invoice Factoring Boosts Business Growth

May 20, 2024

Invoice Factoring can be a game-changer for businesses dealing with long payment terms or late-paying customers. This strategy not only improves your cash flow but also frees up your time by allowing experts to liaise with your customers over their payments. This way, you can focus more on managing and growing your business. In this blog, we dive into five key ways invoice factoring boosts business success, highlighting how this strategic financial tool can enhance your operations and support your growth ambitions. 1. Immediate Cash Injection Access immediate funds by turning over your outstanding invoices, providing a quick infusion of

How to Talk to Your Customers About Factoring

March 10, 2022

Customer reaction is a concern for many business owners who are considering Invoice Factoring as a finance strategy. While you may be worried that your customers will view this relationship as a weakness, establishing a line of credit is actually a positive statement that shows your business is growing and has a stable financial backing to support your growth. Factoring also allows you to extend longer payment terms, an additional benefit to your clients. Leveraging your accounts receivable to generate cash is a financing method used by very large corporations worldwide, such as Shell Oil, Georgia Pacific, and IBM. It

Best Factoring Company of 2021

January 28, 2021

FactoringClub's 'Best Factoring Company of 2021' Award Winner We are excited to announce that SouthStar Capital has been awarded 'Best Factoring Company of 2021' by the FactoringClub! This award is based on SouthStar's integrity, value, proven track-record, quality service, personal care, and passion. SouthStar Capital provides factoring solutions to businesses nationwide. Their wide range of growth capital products, outside the box thinking, and private capital structure allow for creative funding solutions that few can match. SouthStar knows the importance of delivering working capital in a fast and timely manner, so you deal directly with decision makers, in turn streamlining your

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

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

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

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