Republic Business Credit provided a $6.75 million asset-based loan to a temporary staffing company that outgrew its current bank lender.
The Tennessee-based company provides staffing solutions for light industrial, administrative, information technology and essential healthcare workers. It has more than 30 locations in the U.S., has been in business for more than 25 years and is owned by its employees and management team.
The company’s long-time existing lender reached out to Republic’s parent company, Renasant Bank, when it was clear the company would need increased working capital that traditional lending could not accommodate. The company was experiencing cash flow challenges due to inconsistent customer demand combined with staffing recruitment shortages.
“When Renasant connected us with this staffing company, we knew we would be able to provide the increased working capital availability that their incumbent bank was providing,” Leigh Guglielmo, senior vice president of sales at Republic Business Credit, said. “Republic was uniquely positioned to extend an asset-based loan that not only supported the company’s payroll needs but also provided options to continue growing with their manufacturing customers.”
The $6.5 million asset-based loan has an accordion feature in the event of company growth combined with no cash flow related covenants.
“We increased their availability by more than 25%, which is huge for a working capital dependent temporary staffing company, not to mention were able to set up the facility within five weeks of our initial engagement,” Robert Meyers, president of Republic Business Credit, said. “Our speed and industry expertise makes us an excellent partner to companies that find themselves needing funding solutions when traditional banks aren’t the best fit.”
The structure of the loan allowed the company’s long-time lender to maintain the existing treasury for three of its operating accounts while Republic Business Credit provided the working capital line.
“Republic was able to tailor a solution that supplemented the company’s line of credit, making it possible to cover existing costs while planning for the next phase of development,” Melody Vollman, senior vice president of Renasant Bank/Southeastern Commercial Finance, said. “We’re proud to work alongside Republic on solutions like this that work.”
