Star Funding Review
Star Funding is considered the premier provider of Purchase Order Funding. Located in the Garment District of NYC, they have been funding US based importers and exporters for over 17 years. With their main focus on Purchase Order Funding Star also provides accounts receivable factoring services to many of their clients. Most often they will be partnering with other lenders when the lender's clients are in need of some additional capital above and beyond what the current lender is offering. The majority of their business is going to be in the consumer product space(apparel, electronics, home goods) but they also do a lot of funding for government contractors, industrial product suppliers, and food/bev companies. If you find yourself sitting on larger purchase orders but lack the capital to fill them Star Funding can help.
Here is our review of Star Funding, Inc.
Based off of our experience working with Star Funding and feedback we receive from clients Star Funding is a top provider of Purchase Order Funding and Accounts Receivable Factoring. If you are in need of funding for purchase orders or interested in borrowing against your accounts receivable from Star Funding feel free to contact us so we can help make sure you get the best possible deal, or you can apply for Purchase Order Funding Here. There are a lot of supply chain finance and trade finance companies popping up but not many provide the service, facility size, and support that Star Funding does.
Strengths of Star Funding
- Fast Decisions - Star is a privately held firm with about 11 employees. Getting answers is easy and you will have a dedicated account rep that helps you through the process. The CEO is also easily accessible which allows for very little red tape or delay on major decisions.
- No Funding Limits - Star Funding's policy is to not list a credit limit on their contracts and proposals. This is done as a commitment to supporting their clients regardless of how fast or large they grow. As a trade finance lender, their credit decisions are on a transactional basis so as long as you have a solid transaction they will consider funding your company.
- Great Pricing - Star Funding has very competitive rates for factoring. Purchase Order Funding rates are relatively more expensive than factoring rates, but they are still competitive.
Weaknesses of Star Funding
- Limited Credit Coverage - Star Funding is a Non-Recourse lender, meaning they are guaranteeing the credit of customers they are lending against. In the event of default they will help you cover that loss. This means in order for Star to lend against your AR your customers have to be credit approved. Depending on the types of companies you work with, size, and industry coverage can vary.
- International Funding - Star Funding will consider funding your international transactions but won't fund if your 100% exposed to international customers. They want a healthy mix of international and domestic business. Most lenders who will consider 100% international concentration will be looking for larger credit limits. Those groups include Trade Finance Solutions and a few others.
- Structured Lending- While this may not be really considered a weakness Star sticks to their guns for funding specific transactions. While they may be considered one of the more flexible purchase order funding companies they still have specific guidelines for the transactions they will consider funding.
Star Funding Competitors
There are certainly a number of competitors in the trade finance space. There are over 3,000 accounts receivable factors in the US alone but not so many of them are proving Purchase Order Funding solutions like Star does. There are a number of providers that look for smaller ticket transactions. More recently there have been a lot of firms exploring the idea of offering Supplier Credit facilities. Rumor has it, Star is getting into Supplier Credit in the near future. We will update when we know more.
MRKT Conclusion on Star Funding, Inc.
Trade finance is a structured type of funding that may not be so easy to understand for newcomers. There are a lot of people in the space and what sets Star Funding apart from the others is their quick decisions, funding capabilities, and pleasant staff. Working with Star Funding you can rest assured that you are in good hands. If you are looking for purchase order funding or factoring speak with a MRKT Capital associate today to learn more about how to secure the best types of funding for your business. If you need funding today you can begin here.