Temp-Staffing businesses generate commercial receivables and fall under our commercial receivables program as long as the receivables are not owed by Medicare, Medicaid or individuals.
Newly formed staffing agencies have unlimited access to working capital with 1st Commercial Credit. As your sales grow and you place more associates out in the field, your credit line grows in proportion to your revenue stream.
Our funding covers payroll and 941 obligations every week so as a staffing agency owner, you wont have to worry about covering those expenses due to cash flow shortages.
We funded $2 Million in accounts receivable funding for a traveling nurse staffing agency. 1st Commercial Credit gave the staffing agency for traveling nurses the opportunity to capitalize on outstanding invoices as collateral. In addition, the provided accounts receivable funding line of credit allowed the client to have access to fast cash used to fund payroll and increase cash flow during a growing demand during the COVID-19 pandemic. We have experience providing accounts receivable funding lines of credit for travel nurse staffing agencies and can make prompt funding decisions.
In this particular case, our client worked with a franchise-type arrangement for the past three years but decided to stop working with them due to disagreements and poor performance on the franchise side.
The traveling nurse staffing agency then decided to contact 1st Commercial Credit and begin a receivable financing relationship to gain additional working capital for payroll funding. This financing solution allowed the client to simultaneously take on three different contracts to help cease the high demand for nurses in pandemic hotspots such as New York, California, and New Jersey. 1st Commercial Credit provided $2,000,000 in receivables, with a 90% advance of the total value of the invoices. It also facilitated $200,000 in a revolving line for payroll funding needs in the future in a separate transaction.
Additionally, 1st Commercial Credit recently offered receivable financing for a respiratory staffing agency. This particular client is a small temporary staffing agency that specializes in providing respiratory therapy. This staffing agency had begun operations recently and had a minimal number of nurses on call due to being self-financed. However, due to the COVID 19 pandemic, the agency got many calls for respiratory therapy services. We stepped in and provided the funding necessary so our client could offer its services while covering payroll. It also allowed them to hire extra nurses and employees specialized in this field to provide their services to more clients.
1st Commercial Credit is a specialized lending company providing a variety of financial solutions for medical staffing agencies.