Daily News: February 19, 2013

Star Funding Closes $13.5MM in PO, A/R Financing Transactions

Star Funding recently closed $13.5 million in transactions for purchase order finance and accounts receivables factoring across the U.S.

A $7.5 million work-in-process purchase order finance and receivables factoring facility was provided to a California-based startup cosmetics manufacturer and distributor with a high profile celebrity license.

The company needed financing to manage a nationwide rollout of its cosmetics line across various retail channels.

“The company required a unique financing and creative structure that would provide liquidity, and enable this start-up to go to market on large scale,” stated Howard Moore, SVP of Business Development at Star Funding. “Providing work-in-process financing is tricky in any industry, but we feel confident in our ability to control the collateral, and in the management and operations of the company.”

A New York manufacturer of women’s apparel secured $1 million in work-in-process purchase order finance and receivables factoring which will enable it to pay suppliers for raw materials, quickly grow revenue and safely insure the credit risk of its customers.

Larry Frohnhoefer, senior executive VP of Business Development at Star Funding, said, “Our team at Star Funding looks forward to helping the client grow its business with a customized and flexible financing program.”

A California-based manufacturer/distributor of consumer goods obtained a $5 million PO finance and factoring facility. The client has a broad assortment of consumer products and a strong private label business.

“We are very pleased to have provided this flexible facility allowing for the future growth of our client’s growing business,” Moore said. “The team at Star Funding looks forward to working with the company’s seasoned management team in the years to come.”

Star is a privately held company which has been in the purchase order finance for both work-in-process and finished goods, letters of credit and factoring business since January 1999.