Staffing Firm Can Confidently Meet Payroll with Asset-Based Lending Solution

The client, a Southwestern based staffing company that specializes in Light Manufacturing, Human Resources, Information Technology and Medical Staffing, was having liquidity concerns meeting payroll.. The Company was founded over 50 years ago and operates approximately 65 locations throughout the United States.

Challenge:

Being such a large staffing provider the Company had a substantial amount of outstanding accounts receivable at N90 terms. The Company had an established line of credit in place with a previous funder. The facility was insufficient  to support day-to-day operations and was negatively affecting payroll due to the previous lender constricting cash flow. The company needed to resolve the liquidity issue and be able to confidently meet payroll.

Solution:

The Company approached Seacoast Business Funding about providing a working capital solution. Seacoast was able to structure an asset-based facility that provided a substantial increase in working capital. Through the increased liquidity the Company was able to relieve the cash flow constraints they were experiencing. By providing a consistent source of cash flow the Company was able to confidently meet payroll and support business operations.

Results:

–  Increased Advance Rate 

–  Additional Line Availability

–  Reliable structure in place to fund payroll confidently

 

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