Lender Funding Services

STAR welcomes working with other lenders and factors to maximize a client’s access to credit, provided the client is in a pre-sold position. In such cases STAR, with the agreement of the existing lender, takes a purchase money security interest in the assets it finances. STAR will finance the purchase order and inventory portion of the transaction. The factor or asset based lender generally finances the receivables(either recourse or non-recourse), unless it chooses otherwise.

STAR can also finance the receivables, with the net proceeds of the transaction going to the lender. In effect, the lender takes no additional risk, and receives the net profit margin in the transaction. A tri-party agreement signed among the Lender, STAR and the Client documents the actions of the parties and and the priority security interests of the lenders in the collateral.

Type of lenders that STAR Funding works with:

• Accounts receivable factoring companies
• Asset based lenders
• Inventory lenders
• Cashflow lenders
• Merchant cash advance companies
• Banks
• Credit Unions
• Private lenders
• Hedge Funds
• Business development corporations

For Example: An importer/exporter of machinery has a line of credit with a local bank or factor. However, the client needs an additional line of credit to open letters of credit to the manufacturer/supplier of the machines. Otherwise, the manufacturer would not put the machines into production for the client.

STAR Funding’s Solution: STAR is prepared to open letters of credit to the manufacturer/supplier, provided the client has purchase orders from good customers for the merchandise purchased under the letter of credit. When the inventory arrives from overseas, the client ships the product to his good customer. By prior agreement, the lender’s initial advance against the receivables will be used to pay out our exposure.