A staffing startup from Nevada needed working capital. Learn how Flexent can help where traditional lenders can’t, enabling startups to get their feet off the ground.

The Situation: A Staffing Startup

A staffing agency headquartered in Nevada found itself in a predicament. The owner had previous industry experience and had secured five customers out of the gate. Growth opportunities were on the horizon, but the company lacked liquidity. Unfortunately, like many staffing companies, they had no hard assets, and with only two months of business history, they couldn’t qualify for a traditional line of credit to fund the desired growth.

This story is not unique in the staffing industry. Often, staffing agencies face challenges when it comes to securing financing. Traditional lenders typically require hard assets such as real estate or equipment as collateral. However, staffing companies usually operate with minimal physical assets, relying instead on their workforce and client contracts. This lack of tangible collateral can make it difficult for these businesses to access the capital they need to get off the ground, expand and take advantage of new opportunities.

The Solution

Flexent’s approach differs from that of a traditional lender. By considering accounts receivable as collateral, Flexent provided this staffing startup with a $150,000 accounts receivable factoring facility with a 90% advance rate to serve the company’s growth needs. Within a matter of months, the company was able to take on more clients and grow without cash restraints.