Staffing Firm Worries About Making Payroll
- Location: North Carolina
- Business Model: Temporary Staffing
- Industry Vertical: Commercial
“When you own a staffing firm, you have way too many things on your plate, and payroll is the last thing you want to worry about.” – Sabrina P.
Background/Problem
‘NC Personnel’, a commercial staffing firm, was self-funded for several years, but after opening a second office and continuing to add new business, they struggled with slower paying clients and having enough cash flow for payroll. They applied for and utilized a bank line of credit, but found it was a vicious cycle: growth required them to continue extending their LOC while the bank wanted it continuously paid down. Next, they worked with their bank to switch from an LOC to receivables funding but had major challenges getting financial approval for clients and hit credit limits unrelated to their own volume.
“It became very stressful and every week we wondered if we were going to make payroll. We had never had a default. We had never had a receivables problem. It was unbelievable that this was happening when we were doing well and our business was growing. It was a nightmare.”
The Approach
NC Personnel looked for other financial solutions. They reluctantly looked into payroll funding and reached out to Advance.
“We were very nervous. After working with the bank, we thought we would never do funding again. But when we began a relationship with Advance it was like all our worries immediately went away. We did payroll Monday, invoices Tuesday, the money would be in the bank and we would never get to Friday and wonder if we had enough to make payroll. The stress was removed and everyone at Advance was wonderful; it gave us complete peace of mind.”
The Results
Advance provided the working capital and ongoing support NC Personnel needed to work through their growth spurts and make payroll each and every week without worry.
“We would have literally said no to new business without the financial flexibility from Advance. We would have been turning business away and Advance afforded us the opportunity to say yes. There was never another worry if we were going to make payroll.”
If you are considering our services and would like to speak with Sabrina or one of our other current clients, request a free consultation.
{To protect our client’s privacy, we have omitted their company name from the above case study.}
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