Tech support company funds expansion with factoring
AR Funding is proud to welcome this specialized staffing company as one of its newest clients.
AT A GLANCE
Industry: Skilled talent solutions
Company size: $2.7 million annual revenue
Reason for applying: Business expansion
Cash available through factoring: $1 million
PROBLEM: New opportunity requires a cash injection
Founded nearly 15 years ago, this company delivers talent solutions to a variety of customers, including government facilities and structured cabling, manufacturing, distribution and construction companies. Company growth has always been slow and steady, but a recent surge in the demand for fiber optics—a space in which the company has deep experience—has created a tremendous opportunity for rapid growth.
However, the company’s current cash flow can’t support this level of growth because of the gap between weekly payroll requirements and client payment cycles of 60 days or more.
SOLUTION: $1 million factoring credit line
The company already had a line of credit and could not support any more debt, so the owner began researching alternative financing options. After learning about invoice factoring, the owner applied for invoice factoring with AR Funding and was approved for a $1 million factoring line.
Today, the company can access the cash it needs to finance rapid growth in the dynamic field of fiber optics while continuing to offer favorable payment terms to global enterprise clients. With a generous factoring line in place, the owner has set a goal of 30% growth this year.
This happy client received financing with help from Darren Wright, Regional VP, Central Region. Find out how much cash your company can access through invoice factoring. Talk to us.