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Star Funding accounts receivable factoring review

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For when slow-paying customers put a strain on your cash flow.

  • Best for businesses who have open invoices with creditworthy clients.
  • Pick something else if you can qualify for traditional funding elsewhere.

Details

Product NameStar Funding accounts receivable factoring
Loan TermNot stated
APRNot stated
RequirementsSell to creditworthy businesses using invoicing with set terms, have full rights to receive payments

First, do I qualify?

Qualifications aren't laid out clearly on Star Funding's website. But it's likely that Star Funding makes decisions much the same as other accounts receivable factoring companies. 

To qualify, you'll need to sell goods to a creditworthy business. Your own personal credit, and that of any other owners, won't be evaluated. You'll also need to have full rights to the payments, and you must be part of an industry served by Star Funding.

What makes Star Funding unique? 

Even though the Star Funding site doesn't offer much in the way of details, it does offer nonrecourse factoring. This allows your business to get funds without the risk of having to pay Star Funding back if your client ends up not fulfilling the invoice.

Pros and cons

Fully explore the benefits and drawbacks before signing up with Star Funding.

Pros

  • Nonrecourse factoring means lower risk for your business
  • Personal credit isn't a qualification factor
  • Typically advances 80% of an invoice

Cons

  • No information about pricing, loan amounts or qualification standards online
  • Customer service line leads straight to voicemail if you don't have an extension
  • Initial signup is available online, but there's no indication of a full online application

See other business loan options

Enter in some basic information about the amount of financing you're looking for and your business to get personalized options.

Data indicated here is updated regularly

Name Product Filter Values Loan amount APR Requirements
First Down Funding business loans
$5,000 – $300,000
Fee Based
At least 1 year in business, an annual revenue of $100,000+, and a minimum credit score of 400
Alternative financing up to $300K with highly competitive rates.
Lendio business loans
$500 – $5,000,000
Starting at 6%
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
$10,000 – $5,000,000
Varies
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
OnDeck small business loans
$5,000 – $250,000
As low as 9.99%
600+ personal credit score, 1 year in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
Rapid Finance small business loans
$5,000 – $1,000,000
Fee based
Steady flow of credit card sales, bad credit OK
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Compare up to 4 providers

How do I apply?

You can’t apply on the Star Funding website. Instead, you'll have to fill out an online form to get put in touch with a representative. Here are the steps:

  1. Go to the Star Funding website and click Apply now.
  2. Fill out basic contact information for you and your company.
  3. Select your annual revenue and the type of financing you want to apply for and select Submit.

It can take up to 10 days to set up your account, so you may not hear from a representative right away. If you're looking for fast funding and responsive customer service, Star Funding might not be the best option.

What documents do I need to apply?

Star Funding doesn't specify which documents you need to apply. However, the following documents are typically required when applying for factoring:

  • Copies of government-issued ID for all owners
  • Business registration
  • List of customers
  • Access to invoices or accounting software

How do repayments work?

Accounts receivable factoring isn't a loan, so you don't have to worry over repayments. You're advanced a percentage of the invoice, and once your client pays you'll receive the rest — minus the fees for Star Funding's service.

If you're not sure about signing up with a potentially unresponsive provider, compare top factoring services instead.

Expert review

Rhys Subitch

Review by


Rhys Subitch is a writer and editor at Finder who tackles topics across the site. With half a decade of experience researching, editing and writing for a Fortune 500 company, university and several independent publications, Rhys brings readers the most up-to-date and curated info on all things finance.

Expert review

Star Funding offers working capital solutions to small and midsize businesses in a number of industries. Outside of its accounts receivable factoring, Star Funding offers purchase order financing, letters of credit, supplier credit and products for lenders and brokers.

But for all its offerings, it’s difficult to get information about its programs — including its accounts receivable factoring. You won’t find its fees, maximum or minimum loan amounts, states it serves or even full eligibility criteria online.

And calling the phone number on the website might not produce much in the way of information either. We called and were immediately directed to voicemail and never received a call back.

But what it does offer is nonrecourse factoring for its accounts receivable. It also lists some of the industries served, including wholesale and distribution, manufacturing, business services and staffing, among others.

Want to check out lenders that give details before you apply? Compare other business loan options.

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