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The Secured Lender

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September 23, 2024

Source: Republic Business Credit

Creative funding solutions transitioned the company from a ledgered line of credit to an asset-based loan.

LOS ANGELES – A California-based, national 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 refinanced the incumbent regional bank while increasing the company’s access to working capital. 

The staffing agency provides staff augmentation, rapid team expansion and comprehensive, temporary project management for Fortune 100 firms across the U.S. It specializes in highly-skilled, temporary staffing across the administrative, project management and technology enhancement industries.

“The temporary staffing industry is known for requiring payroll funding to support cash flow,” said Jason Carmona, EVP. “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.”

Republic provided a $1,500,000 asset-based loan with an elevated 90% advance rate on their accounts receivables. Additionally, Republic added on an accordion that could scale up to $5,000,000, which supported the company’s focus on growth.

“Our expertise in temporary staffing agencies allowed us to provide an asset-based loan instead of a ledgered line of credit or factoring facility,” stated republic President, Robert Meyers. “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.”

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About Republic Business Credit

Republic Business Credit is a nationally recognized commercial finance company supporting the working capital requirements of companies nationwide, including private equity and entrepreneurial businesses. Republic provides asset-based lending, e-commerce, ledgered lines of credit, factoring and Fast AR Funding. Republic partners with its clients to provide up to $15 million in senior credit facilities to rapidly growing businesses, start-ups and companies experiencing recoverable distress. Republic is recognized by the Secured Finance Network as one of the largest finance companies in the United States of America. Republic is proud to be headquartered in New Orleans with additional offices in Chicago, Los Angeles, Houston and Atlanta. Republic is a wholly owned subsidiary of Renasant Bank.