Republic Business Credit provided a $1.5 million asset-based loan with an elevated 90% advance rate on their accounts receivables for a California-based, national staffing firm. Additionally, Republic added on an accordion that could scale up to $5 million, which supported the company’s focus on growth.
The staffing firm wanted a new financing partner after its incumbent bank opted not to renew its current line of credit due to the size of the credit facility, as the bank chose to focus on mid-market clients. The company hired a well-respected industry investment banker who selected Republic Business Credit as the best partner to support the payroll needs of the temporary staffing company. Republic Business Credit refinanced the incumbent regional bank while increasing the company’s access to working capital.
“The temporary staffing industry is known for requiring payroll funding to support cash flow,” Jason Carmona, executive vice president of Republic Business Credit, said. “Since we provided the initial funding, financing is no longer a concern. The company’s founders have been able to focus on growing the company and the future is limitless for them.”
“Our expertise in temporary staffing agencies allowed us to provide an asset-based loan instead of a ledgered line of credit or factoring facility,” Robert Meyers, president of Republic Business Credit, said. “Utilizing our talented team, including our in-house heads of field exams and legal, we were able to significantly reduce the costs of setting up an asset-based loan for the entrepreneurial-owned staffing company. We set our customers up for success from the beginning, and we are proud to have achieved that again through this latest partnership.”
