Staffing Firm

Case study #1: Saving a staffing company $38k a year.

Client: A permanent placement, temporary, and temp-to-hire staffing firm.

Situation: To maintain cash flow, the business was using a factoring company that specialized in staffing companies. But the business owner wanted to reduce financing and administration cost. A consultant introduced them to us as a possible solution. They chose Cash Flow as their best source of working capital to fund growth.

Solution: A $600,000 accounts receivable facility. Cash Flow established a 90% advance (larger than the previous lender) and frequent reserve releases, enabling the company to reduce payables more quickly and hire an additional sales person to increase growth.

Result: Cash Flow saved the company $38,000 per year in financing costs. Recently the credit line was increased to $1,200,000 due to the company’s growth, and the happy business owner has referred additional business to Cash Flow.

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