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Accounts Receivable Factoring & Invoice Funding Services
What is Accounts Receivable Factoring?
Accounts receivable factoring is a financial transaction where a business sells its unpaid invoices to a third party (like STAR Funding) at a discount. This provides immediate working capital, allowing companies to bridge the 30-to-90-day payment gap, meet payroll, and fulfill new orders without taking on traditional bank debt.
25 Years of Specialized Factoring Expertise
Since 1999, STAR Funding has provided over $1 Billion in liquidity to wholesalers, manufacturers, and government contractors. While many modern fintech lenders rely solely on algorithms, our 25 years of experience allow us to underwrite complex deals that others decline. We don’t just provide cash; we provide a dedicated credit department, professional collections support, and a strategic partnership for your growth.
Government Contractors
Specialized funding strategies that navigate the Assignment of Claims Act and complex government payment cycles.
Wholesale & Distribution
Bridge the gap between paying your suppliers and receiving payments from your retail or commercial customers.
Not sure if you need Factoring or PO Finance?
Learn how to choose the right strategy for your current sales cycle.
Frequently Asked Questions About AR Factoring
How quickly can I get funded with AR factoring?
At STAR Funding, initial account setup typically takes 3 to 5 business days. Once your facility is established, individual invoices are often funded within 24 hours of verification. This rapid turnaround is essential for businesses needing immediate cash flow to cover operational expenses or new inventory.
What are the typical factoring rates for importers and distributors in 2026?
Factoring rates generally range between 1% and 3% of the invoice value per 30 days. For government contractors, rates are often more competitive due to the high creditworthiness of the debtor (your end customer). STAR Funding offers tiered pricing based on your monthly volume and payment terms.
Is accounts receivable factoring considered a loan?
Factoring is the purchase of an asset (your accounts receivable). Funds are then advanced to you against the expected repayment from your customer. Because a factor is funding based on the credit quality of your customers, this is ideal for fast-growing companies that may not qualify for traditional bank lines.
What is the difference between Recourse and Non-Recourse factoring?
In Recourse Factoring, your company is responsible if the customer fails to pay. In Non-Recourse Factoring, STAR Funding assumes the credit risk. If your customer goes bankrupt and cannot pay the invoice, we absorb the loss, providing you with built-in credit insurance.