Capital Business Credit Launches Financing Program for Staffing
Capital Business Credit LLC (CBC) announced it has created a financing platform specifically for staffing firms.
The platform was created to address the growing need for staffing firms to access working capital. According to Investors.com, temporary work has risen by 44.5 percent since 2009. In Q4/11 and Q1/12, 668,000 of the 1.2 million jobs created were temporary, according to Bloomberg.
In general, staffing firms pay their employees on a daily, weekly or bi-monthly basis, while their customers pay them once a month; this presents a working capital challenge. CBC will provide revolving credit facilities between $1 million and $10 million to ensure that staffing firms have the capital they require to manage and grow their businesses.
“Temporary staffing is a vital component of the American economy,” said James Janesky, director, senior research analyst for Avondale Partners. “Historically, following an economic downturn, businesses first turn to temporary staffing to fulfill their requirements before hiring new, full-time employees. The return to modest economic growth following the most recent recession has proven to be a boon for the temporary staffing industry, particularly due to hesitancy about permanent hiring.”
“As with other industries that are required to meet their accounts payable obligations prior to receiving payments from their customers, factoring and asset-based lending products present a reliable solution to the staffing sector,” said Marc Adelson, president and chief executive officer of Capital Business Credit. “With traditional bank lending remaining anemic, Capital Business Credit is filling a void in the marketplace that will enable staffing firms to provide more temporary employees to more businesses, ultimately creating jobs.”
Established in 1988, Capital Business Credit is a commercial finance company specializing in providing creative supply chain financing solutions.