Blackstar Capital, a provider of invoice financing to businesses, has secured $1 billion in funding to support government contractors and subcontractors. 

The regulated non-bank financier offers a streamlined and data-driven approach to funding via a technology platform which it says onboards customers in as little as four minutes.

The funding will be used to provide working capital solutions to businesses that provide services to the government. It has also partnered with several of the world’s largest supply chain platforms to create a unique working capital product targeted to the suppliers of major corporates.

“This significant funding milestone will allow us to further support the growing needs of government contractors and subcontractors,” said Michael Ellis, chief commercial officer of Blackstar Capital. 

“Our funding solutions provide businesses with the flexibility and certainty they need to thrive in the competitive government contracting market.”

Government contractors often win contracts that are payable on credit terms, which can put a strain on their cash flow, particularly for subcontractors who are dependent on payments from prime contractors. 

Qogita raises £69m for ‘Amazon of wholesale procurement’

Blackstar Capital’s invoice financing solutions provide businesses with access to working capital to cover their expenses and meet their obligations. It also collaborates with prime contractors to extend funding to their subcontractors. 

Approval decisions are typically made within 24 hours. The company also offers a letter of funding intent (LOI), which can be used to support government tenders.

“We are committed to being a trusted partner to both government contractors and subcontractors,” said Ellis. “We are here to help them achieve their business goals and build a stronger, more resilient supply chain.”

The programme will aim for full deployment of capital by mid-2025.

Tech Returners set to partner with Government Digital Service