The Client
- Location: Oregon
- Business Model: Contract & Contract to Hire
- Industry Vertical: IT/Engineering
“I don’t have to stop and wonder how I’m going to afford to bring on new clients and candidates now that we’re working with Advance. It allows me to think without limitations when it comes to growth.” – Tom F.
Background/Problem
‘Professional Solutions’, a contract IT/Engineering firm, was growing rapidly. As they added new clients, they had the recruiting capacity, the tools and systems, the right candidates, but not the finances to support it. Even with solid clients and payment terms, they didn’t have the money to float payroll while waiting 30-45 days for payment.
“Early on I would use savings, credits cards, my 401K, even defer my own compensation as we went through periods of rapid growth. Bankers told me I was going to ‘grow myself out of business.’ They didn’t understand my business. I needed a better credit facility for growth. I kept hiring, growing, hustling and figuring it out. But when I had a client pay a little late, I ended up borrowing money from a family member. I paid them back quickly but it felt terrible.”
The Approach
Tom had looked into factoring before and didn’t feel good about some of the companies he spoke to and abandoned the idea. He received a call from Advance Partners at just the right time.
“It felt like a good match from the beginning, more than I could ask for. Advance consistently delivers professionalism, experience (they understand my business!) and extensive data. There’s a fear going into this that you’re going to get pounded with fees when you work with a factoring company. A partner wants to work in a way that aligns with your agreement, and that’s what Advance does.”
The Results
Before utilizing payroll funding with Advance, Professional Solutions had to limit their new sales because they couldn’t afford to bring on multiple clients at one time. Now they’re on pace to more than double their business over the prior year.
“I don’t have to hold my sales team back. They feel supported and they don’t have to check with me to see if we’re tight on cash. I love taking barriers out of people’s way. We’ve exceeded all of last year’s billings in the first 6 months of this year. We can confidently go after new clients, new candidates and any new staffing opportunity.”
If you are considering our services and would like to speak with Tom or one of our other current clients, request a free consultation.
