DF,

We recently provided a working capital solution for an IT Staffing business. Please see a brief description below.

North East Based IT Staffing Company

Situation:
• North East based IT Staffing Company that provides temporary staffing support to large contractors serving fortune 100 companies and some direct contracts with the same customers.
• Owned by a foreign entity that acquired a US based company to gain entry into the US market.
Need:
• Flexible working capital solution to help with day to day needs and growth of the business.
• Demand from customers has grown year over years and the Company is starting to get direct contracts with end customers rather than working as a subcontractor.
• Parent Company/Owners have been supporting the Company financially since the acquisition and wanted the Company to finance the business on their own.

Challenges:
• The Company spoke with several banks domestically and abroad and none of them were willing to offer a solution without a guarantee from the parent company or the parent company posting collateral.
• The Company spoke with a few non-bank finance companies that could not get comfortable with the foreign ownership and contracts with customers.
• To gain entry into the US market the Company started doing work as a subcontractor to prime contractors who have contracts with large end customers. Some of these contracts had pay-when-paid arrangements.

Solution and How SBF Added Value:
• SBF met with the Company and quickly understood the business, ownership structure, billing practices, customers, contracts, need, and offered a flexible solution.
• We were able to get comfortable with the Company working as a subcontractor and understood the pay-when-paid billing practices with some of their larger customer.
• We funded a $3mil working capital facility with an aggressive advance rate that finances all customers without asking for a corporate guarantee from the parent.

We are active LENDERS to the staffing industry. We offer very attractive rates, and advance rates.
Best,

Kevin

PS: This opportunity was presented to us from a member of this board who never did many factoring/ABL deals. He and his client are extremely pleased!