Case Study · Staffing
From turning down business to a $2.5 million funding facility
A staffing company was growing faster than its cash flow could support. Six business days later, that stopped being the constraint.
- IndustryStaffing
- ChallengeRapid growth + weekly payroll
- SolutionAR Factoring
- Facility$2.5 Million
- Time to funding6 business days
ACT 01 — THE CHALLENGE
Growing faster than the cash could arrive
A staffing company came to us with a problem most business owners would love to have: they were growing faster than their cash flow could support.
The company had recently landed two major national accounts, but its customers were paying on Net 45–60 day terms. Meanwhile, hundreds of employees had to be paid every Friday.
The business was profitable. The customers were strong. The opportunity was there.
The cash simply wasn’t arriving fast enough.
Their existing bank line was already near its limit, and increasing it would have taken weeks — possibly months. Without additional working capital, management was preparing to turn down new business simply because they couldn’t comfortably fund the additional payroll.
ACT 02 — THE SOLUTION
A facility designed to grow alongside the business
After reviewing the company’s receivables and customer base, we structured a $2.5 million accounts receivable factoring facility designed to grow alongside the business.
Within 6 business days, the facility was established. The company’s first funding generated approximately $640,000 in immediate working capital from invoices that otherwise wouldn’t have been collected for several more weeks.
That changed the conversation almost immediately. Instead of asking “Can we afford to take this account?” management could start asking:
“How quickly can we staff it?”
- ReceivablesInvoices on Net 45–60 day termsTwo new national accounts, hundreds of employees paid every Friday
- Bridgeport facility
$2.5 million AR factoring facilityEstablished within 6 business days - Available capital≈$640,000 first fundingImmediate working capital from invoices that would otherwise have taken weeks to collect
The Result
Cash flow that finally caught up with sales
- $640KImmediate working capital
- $2.5MFunding facility
- 6 business daysFacility established and first funding
- 42%Revenue growth over the following 12 months
With predictable access to cash, the company met payroll comfortably, onboarded more than 80 additional employees, accepted both new customer contracts, and stopped relying on its bank line as the sole source of working capital. Over the following 12 months, annual revenue increased from approximately $8.4 million to $11.9 million.
The company didn’t need more sales.
It needed its cash flow to catch up with the sales it already had.
What the Client Said
“We were actually considering walking away from new business because we couldn’t keep adding payroll while waiting 45 or 60 days to get paid. Darin took the time to understand what we were trying to accomplish and put together a facility that gave us room to grow. Within a week, the pressure was gone. Today, when we win a new account, our first question isn’t how we’re going to fund it anymore.”
The Bottom Line
Growth shouldn’t create a cash-flow problem.
If your company is profitable and growing but customer payment terms are putting pressure on payroll, inventory, suppliers or your ability to accept new business, the problem may not be your business — it may simply be timing. Let’s talk about whether your receivables can provide the working capital you need to keep growing.
Let’s talk about your businessNo pressure. No obligation. Just a conversation.
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