The temporary medical staffing agency was previously with a franchise type of arrangement 3 years ago and broke away due to disagreements and non-performing benefits that was promised by the franchise.
Since then, the company established a new entity and has been growing steadily. The owner had previously contacted 1st Commercial Credit last year but postponed his decision because sales were flat. However, with recent developments he decided to move forward with establishing a receivable finance relationship because he needed additional working capital to make payroll for almost 60 days before getting paid.
The client was awarded 3 contracts all at the same time and with this latest demand of nurses servicing the pandemic coronavirus hot spots of California, New Jersey and New York, it was obvious that it put the client in a position where he would not be able to make payroll until payments came in.
1st Commercial Credit established an Accounts Receivable Funding Agreement with the medical staffing agency that provided a $2,000,000 receivables base line of credit at a 90% advance of the face value of the invoices and a separate agreement involving a $200,000 revolving line that is available for payroll funding as needed in the future.
The initial funds were used for mobilizing nurses and free up the 45 to 60 day pay cycle from customers and some prime contractors that are taking the lead on filing in the need for nurses from major hospitals and health centers.
The staffing agency now uses SOA Creator by MybizPad that helps consolidate all the timesheets from all the nurses servicing almost every state. The software merges the timesheets with the invoices and prepares a funding schedule. MyBizPad also provides temp staffing invoicing software for those staffing clients that prefer to use it.
MyBizPad is a proprietary software that was made by 1st Commercial Credit to help staffing agencies and other businesses submit the invoices to clients and the factoring company for funding.
In addition to this latest transaction, 1st Commercial Credit is a medical staffing factoring company that has funded many small staffing agencies and locums during the 2020 pandemic era.