Reliable Working Capital Solution for IT Staffing
The client, a boutique IT staffing company located in the Southeast. Focuses on providing mid-sized and multinational Fortune 500 companies with highly skilled professionals to optimize their IT department’s performance. Since inception in 2013, the Company’s sales have increased year-over-year and have recently become profitable.
Over the last six months the company sales increased exponentially driven mainly by their three largest customers. With this new demand the Company needed to increase their credit line in order to cover bi-monthly payroll and advertise for placements. The Company was frustrated and concerned about the reliability of their current factor. So they turned to their Small Business Banker (“SMB Banker”) for assistance.
Realizing the Company’s contract with the current factor was ending shortly, their SMB Banker tried to secure a traditional line of credit. The Company was unable to meet the criteria for a traditional loan, due to the higher advance rate needed to pay off their current facility and their debtor concentration. The SMB Banker contacted Seacoast Business Funding to discuss a working capital solution to best meet the Company’s needs.
Given our knowledgeable experience in the staffing industry we were able to improve their advance rate by 5%. As well as, provide the additional working capital the Company needed. Secondly, we were able to provide competitive rates versus those issued by the previous factor. The entire underwriting and funding process including the seamless transition to our platform took a total of 2 weeks. The Company is extremely satisfied with the reliability and efforts of our team in providing them with a scalable working capital solution.