Interstate Capital works with a range of staffing companies, including firms that recruit and place temporary and permanent workers in a wide variety of industries. Whether a staffing company specializes in placing office staff, technology professionals, security guards, medical specialists, or janitorial workers, invoice factoring can provide an efficient and affordable solution for a staffing company’s cash flow needs.
Let’s take a look at how one start-up staffing company (names have been changed) benefitted from partnering with Interstate Capital over a period of a few years.
One staffing company’s cash flow challenge
After working in the staffing field for four years, Carl Braden launched his own staffing company, CSB Recruiters, in the fall of 2013 outside a large city in the Southeast. By April 2014, he was ready to expand from recruiting, one person at a time, to running a temp-to-hire agency for clerical staff. He had a few good customers, but he could expand if he could work with a few local businesses that wanted 45- and even 60-day terms. It became clear very quickly that he wouldn’t have enough capital to carry his new company while waiting for these new potential clients to pay.
Although he knew very little about how factoring worked, he contacted Interstate Capital on the advice of a business broker. At Interstate, a team of professionals with experience working with other staffing firms walked him through the whole process and got his application approved quickly. He soon was sending in his first temporary employee time cards and invoices, some as small as $100. The key to his ability to keep up with payroll for his workers was Interstate Capital’s same-day payment on verified invoices. Instead of waiting weeks or months for his customers to pay, Carl received direct deposits into the CSB Recruiters bank account right away.
Maintaining healthy business growth
Shortly after partnering with Interstate Capital, Carl was able to secure several new contracts and his business began growing. He moved from handling all the paperwork himself to hiring office staff to manage billing and other tasks. Freed up to focus on marketing his business, Carl was able to significantly expand his client base.
By the close of 2014, CSB submitted $450,000 in invoices to Interstate Capital – and in 2016, that number grew to $3.3 million. Now, with offices in two states, CSB employs temps in a variety of jobs, including clerical, light industrial, warehouse work, automotive repair, customer service, call centers, and managerial positions. Today, Carl and his staff still work with the same Interstate Capital account manager who helped him factor his staffing invoices years ago – and CSB Recruitment continues to grow.