Commonwealth Capital, LLC is pleased to announce it has been selected to provide invoice factoring to a new Temporary Staffing Agency in Minnesota. While the Company is new, the management has many years of experience in managing staffing firms.
Why The Temporary Staffing Agency Wanted To Factor Its Invoices
As the Company has grown and added new clients, the Company’s cash on hand started to decrease and its outstanding receivables grew. While the Company was initially able to wait for payment on its invoices, the more placements it has, the more its cash is tied up in wages, insurance, and payroll taxes. The Company was concerned about its ability to finance its future growth and began searching for solution to funding its payroll.
What The Staffing Firm Was Looking For In A Factoring Company
The Company’s owners and managers were unhappy with the experiences it had with factoring and payroll funding companies while at previous companies. They didn’t like that checks were mailed to the East Coast, where the factoring company’s lockbox was located. The factoring company didn’t provide clear reporting, so the client was never sure what fees it was paying. The Company also found that while they were courted by the owner of the factoring company at the beginning, the owner became unresponsive once they were a client. The Company was in search of a local, accessible, and flexible factoring company.
How Commonwealth Capital Provided Growth Financing
Commonwealth Capital spent the time to develop a relationship with the Company as it started from scratch. We helped look for affordable worker’s comp insurance. We found out the Company’s long-term goals and how large its management had built previous staffing agencies. With this information in mind, we provided a $500,000 invoice factoring facility, so the Company can grow. The Company is adding between 2–3 new clients per week and is accelerating its growth because they have the funding available to meet payroll.