SouthStar Capital

What SouthStar Capital does

SouthStar Capital is a privately held, nationwide U.S. commercial finance company founded in 2008 and headquartered in Mount Pleasant, South Carolina, with additional regional offices in Atlanta, Charlotte, and Dallas. The company provides working capital solutions to small and mid-sized businesses across roughly a dozen verticals including manufacturing, staffing, government contracting, distribution, construction, professional services, consumer products, and critical power/clean technology. Facility sizes range from roughly $50,000 for small operators to $14 million for specialized situations such as DIP financing, with typical deals in the $750K-$5M range. SouthStar positions itself as a relationship-driven direct lender focused on speed (approval in as little as 24 hours, funding in 2-5 days) and asset-based credit decisions rather than borrower credit history.

The company's core offering is a portfolio of eight financing products: Accounts Receivable Financing, Invoice Factoring, Asset-Based Lending (with borrowing bases of 70-85% on eligible AR, 50-65% on inventory, up to 75% on equipment), Purchase Order Financing, Payroll Funding, Government Contract Financing, Equipment Leasing, and DIP Financing. Underlying operations — underwriting, collections, payment processing, account management, and funding — are handled in-house, and clients access facilities through a 24/7 online portal. There is no disclosed proprietary technology, and the company's intellectual property footprint is limited to its brand rather than patented systems. Revenue is generated via transaction-based fees tied to the duration and size of each facility, with all pricing quote-based and not publicly disclosed.

Distribution combines direct inside and field sales with three formalized partner programs — Preferred Brokers, Referral Partners, and Bank Referrals — and a more recent Private Equity referral program visible on the company website. The go-to-market motion is sales-led, supplemented by content marketing, social media (LinkedIn, X, Facebook, YouTube), email, PR, and industry events. SouthStar has no disclosed parent company, institutional ownership, or private equity backing identified in the source materials, and submitted a Form D in January 2024 indicating an exempt securities offering that has raised over $6.3 million to date. The company acquired inFactor in May 2019.

Name

SouthStar Capital

Legal name

SouthStar Capital, LLC

Website

https://southstarcapital.com

Company type

Private

Founded year

2008

Operating status

Operating

Headcount range

101–250 employees

Short description

SouthStar Capital is a privately held U.S. commercial finance company founded in 2008 that provides working capital facilities — accounts receivable financing, factoring, asset-based lending, purchase order financing, payroll funding, government contract financing, equipment leasing, and DIP financing — to small and mid-sized businesses across multiple verticals nationwide.

Ownership category

akta.pro rank

Product category

Alternative Commercial Finance

NAICS

Sales Financing (52222)

SIC

Short-Term Business Credit Institutions (6153), Finance Lessors (6172), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

SME Term Loans & Growth Capital (FSAKAGAB)

akta.pro secondary industries

SME Trade Finance & Working Capital (LCs, Guarantees, Receivables) (FSABABAF), Middle-Market Lending (FSANADAI)

Keywords

• Accounts receivable financing
• Asset-based lending
• Invoice factoring
• Purchase order financing
• Working capital solutions

Headquarters

HQ city

Mount Pleasant

HQ country

United States

HQ region

North America

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D

Revenue model

1. Accounts Receivable Financing: SouthStar advances up to 90% of outstanding invoices, providing immediate working capital to businesses. The company evaluates customers' creditworthiness rather than the borrower's credit history.
2. Invoice Factoring: Factoring arrangement where SouthStar purchases invoices and provides immediate cash, with funding available within days of invoice submission.
3. Purchase Order Financing: Financing to cover supplier and production costs for businesses fulfilling large purchase orders, bridging gap between supplier payment requirements and customer payment cycles.
4. Asset-Based Lending: Revolving credit facilities secured by accounts receivable, inventory, and equipment with borrowing bases calculated as percentages of asset values (70-85% of eligible AR, 50-65% of inventory, up to 75% of equipment).
5. Payroll Funding: Specialized funding to cover payroll obligations, with SouthStar advancing up to 85% of invoices submitted.
6. Equipment Leasing: Lease financing for vehicles and construction equipment, serving equipment leasing platforms and businesses needing to expand their fleet.
7. Government Contract Financing: Financing solutions for government contractors to bridge cash flow gaps caused by long payment terms on federal contracts.
8. DIP Financing: Debtor-in-Possession financing for businesses in Chapter 11 bankruptcy or facing financial distress, providing liquidity to continue operations during restructuring.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels7 records

Core offering

SouthStar Capital is a nationwide direct commercial finance company that provides working capital solutions to small and mid-sized U.S. businesses. Its core offerings include accounts receivable financing, invoice factoring, asset-based lending, purchase order financing, payroll funding, government contract financing, equipment leasing, and DIP financing, with advance rates up to 90% of outstanding invoices and funding typically closing in 2-5 days.

Product overview

SouthStar Capital is a nationwide commercial finance company offering a portfolio of working capital and financing solutions designed for businesses across various industries. The company operates as a unified platform providing eight distinct financing products: Accounts Receivable Financing, Invoice Factoring, Asset-Based Lending, Purchase Order Financing, Payroll Funding, Government Contracting Financing, Equipment Leasing, and DIP Financing. These solutions work together to address different cash flow challenges businesses face—from converting outstanding invoices to immediate capital, funding large purchase orders, covering payroll cycles, to supporting companies during bankruptcy restructuring. The company tailors financing based on business assets rather than credit history, enabling approvals based on customer creditworthiness.

Differentiator

Problem solved

Functional benefit

Products and services

• Accounts Receivable Financing A financing solution that advances funds against outstanding invoices, providing immediate access to working capital by converting receivables into cash for U.S. businesses facing extended customer payment terms.
• Invoice Factoring A financial solution where businesses sell their invoices to SouthStar Capital for immediate cash, typically advancing up to 90% of invoice value, for businesses needing rapid liquidity.
• Asset-Based Lending A flexible financing option that uses business assets such as accounts receivable, inventory, and equipment as collateral to secure revolving loans or lines of credit.
• Purchase Order Financing Financing that covers supplier and production costs for businesses to fulfill large purchase orders, bridging the gap between supplier payment requirements and customer payment cycles.
• Payroll Funding A specialized facility that provides immediate capital to cover payroll obligations, particularly useful for businesses with delayed customer payments or seasonal cash flow challenges.
• Government Contracting Financing Financing solutions tailored for government contractors, providing advances based on verified purchase orders and contracts to support federal supply projects.
• Equipment Leasing Leasing solutions for vehicles and construction equipment that help businesses preserve cash flow while maintaining access to necessary assets.
• DIP Financing (Debtor-in-Possession) Specialized financing for businesses undergoing Chapter 11 bankruptcy restructuring, providing liquidity to continue operations during the reorganization process.

Quantifiable outcome

• Funding available in as little as 24 hours, with most facilities closing in 2-5 days
• +2 more outcomes

Named customers14 records

Segments10 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered core.

• Preferred BrokerscoreChannel Partner/ Reseller/ DistributorSouthStar Capital's Preferred Brokers program offers benefits including automated updates on client referrals, residual monthly commissions, and direct funding capabilities. Brokers can work directly with SouthStar to provide fast, reliable funding for their clients. The program emphasizes speed, professionalism, and relationship building.
• Referral PartnerscoreChannel Partner/ Reseller/ DistributorSouthStar Capital's affiliate program for referral partners provides access to an efficient, four-step funding process. Partners receive same-day application approval and funding within 2-5 days. Competitive commission rates based on gross fees ensure higher earnings for referral partners.
• Bank Referral PartnerscoreChannel Partner/ Reseller/ DistributorBank Referral program offers alternative funding solutions for clients unable to secure traditional bank financing. With same-day approval and funding in 2-5 days, SouthStar provides custom financing solutions focused on financial growth and stability. SouthStar acts as a stepping stone until clients are ready to return to bank financing.

Scale indicators6 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• BlueVine: BlueVine provides invoice factoring, revolving lines of credit, and term loans to SMBs — directly competing with SouthStar's AR financing, invoice factoring, and working capital products. Both target cash-constrained businesses with technology-enabled, faster-than-bank underwriting.
• Fundbox: Fundbox offers SMB working capital through invoice-based financing and business lines of credit, serving the same small-business segment as SouthStar Capital. Both compete on speed and accessibility versus traditional bank financing.
• Balboa Capital: Balboa Capital is a direct lender providing equipment leasing, working capital, and business loans to SMBs. Its equipment leasing product directly mirrors SouthStar's equipment leasing offering, with similar customer profiles and broker-driven distribution.
• Riviera Finance: Riviera Finance is a commercial finance company specializing in accounts receivable financing and factoring for SMBs and mid-market companies. Its core product set — AR financing, factoring, and asset-based lending — directly overlaps with SouthStar's primary offerings.
• Crest Capital: Crest Capital is a direct equipment leasing and financing company for SMBs, offering vehicle and equipment leases with quote-based, relationship-driven underwriting. Highly comparable to SouthStar's equipment leasing and ABL products.
• TimePayment: TimePayment (now part of Fourshore Capital) provides equipment financing and leasing to SMBs, with a focus on vendor and broker channels. Its equipment leasing focus and SMB target customer closely match a core SouthStar product line.
• Leaf Financial: Leaf Financial provides factoring and accounts receivable financing to SMBs, including those with credit challenges, in a direct-lender model. It competes head-to-head with SouthStar's AR financing and invoice factoring products in the sub-$10M facility segment.

Emerging players

• Currency Finance: Currency provides working capital loans and SBA loans to SMBs through a digital platform. It overlaps with SouthStar's working capital products but with a more technology-led, self-service model targeting smaller facilities than SouthStar's typical $750K-$5M range.

Broad incumbents

• OnDeck Capital: OnDeck (now part of Enova) is a large online SMB lender offering lines of credit, term loans, and invoice financing. It serves the same small-business segment as SouthStar but with a more technology-centric, larger-scale platform model.
• Wells Fargo Capital Finance: Wells Fargo Capital Finance provides asset-based lending, factoring, and government contract financing — directly competing with SouthStar's ABL, factoring, and government contracting products but with much larger facility sizes and balance-sheet capacity.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/southstarcap
• YouTubeyoutube.com/@southstarcapital
• Facebookfacebook.com/SouthStarCapitalLLC
• LinkedInlinkedin.com/company/southstar-capital-llc

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds3 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about SouthStar Capital