Companies all across the country put their trust in First Star Capital to quickly and efficiently process their working capital financing requests because First Star is a financially sound firm that delivers effective and relevent financial solutions even in challenging economic environments. In fact while many of our competitors have curtailed lending activity, First Star has been servicing heightened demand with high approval ratios and competitive programs.
Explore our working capital financing programs and discover which best fits your needs.
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Merchant Cash
Advance: |
Factoring
Program: |
Purchase Order
Financing: |
| What is it? |
Merchant cash capital is also commonly referred to as a business cash advance, and is a very common form of working capital. |
Commonly referred to as factoring programs, A/R factoring is a type of working capital that uses current business receivable accounts as collateral for a loaned sum of cash. |
Purchase order financing is a working capital tool that allows good manufacturers to complete large purchase orders without straining their cash flow. |
Who is
it for? |
Small- to medium-sized businesses, either service or goods based who have steady credit card transactions, but often find themselves in cash flow limitations. |
Medium-sized businesses that have steady account receivables, but often find themsevles in cash flow limitations during the 30, 60 or 90 day payment periods. |
This program is specifically desinged for small to medium sized business that produce goods and businesses that often receiver large commercial or governmental contracts that may exceed their current cash limiations. |
How does
the
it
work? |
A lump sum of cash is given to the customer. The funds are advanced against the customer’s credit card sales.
Payment is as simple as securing credit card sales. A small percentage of every credit card transaction is taken until the principal amount and any applicable fees are fully repaid. |
Receivable accounts are sold to First Star Capital, in exchange for the working capital, and First Star takes over the collections of the particular receivable account.
Payment for services occurs when the receivable accounts are collected. First Star passes along most of the collected cash, less any applicable fees until the principle is paid off. |
First Star will supply the necessary cash to the manufacturer’s supplier ensuring that the purchase order is fulfilled.
Payment occurs by withholding a small percentage of each completed transaction of the original purchase order. This occurs until the principal and interest are fully paid off. |
What can I
use it for? |
The cash advance can be used in a variety of manners. The amount can be used for common day to day expenses, expanding operations, payroll, equipment upgrades, and much more! |
Like merchant capital, the cash advance can be used in a variety of manners. The amount can be used for common day to day expenses, expanding operations, payroll, equipment upgrades, and much more! |
This working capital program is primarily used to complete orders of physical goods, freeing up cash flow in the process. |
How do
I apply? |
Required documents:
- Completed First Star Capital Cash Advance Application (signed & dated)
- The most recent 3 months of business bank statements
- The most recent 3 months of credit card processing statements
Some applicants may also be required to submit:
- A copy of their current merchant processing equipment lease
- A tax return or financial statement
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Required documents:
- Completed First Star Capital Factoring Application (signed & dated)
- The most recent 3 months of complete business bank statements
- A copy of owner's driver's license
Additional documents required upon pre-approval:
- Articles of Incorporation
- Current A/R detail aging report
- Sample Invoice
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Required documents:
- Completed First Star Capital Purchase Order Application (signed & dated)
- A copy of Driver’s License
- A copy of customer Purchase Order
Additional documents required upon pre-approval:
- 2 Personal References
- Articles of Organization
- Business or reseller’s license
- Most recent 6 months of business bank statements
- Current AP/AR
- Current Financials (Income Statement & Balance Sheet)
- Income tax returns for the past 1 year
- Voided business check
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Are you in need of working capital in order to grow your business?
