Republic Provides a $4.5 million Facility to a Midwest-based light industrial staffing firm
August 15, 2019
August 15, 2019
Chicago, IL – When a temporary staffing and consulting firm began to outgrow their existing line of credit, they sought out Republic Business Credit to provide a larger facility and a higher advance rate to keep up with their escalating payroll needs. Republic partnered with the community bank to provide a flexible receivable facility while the referring bank was able to maintain all of the treasury management services. The bank wanted to keep a strong relationship with the client and looked to take over the facility within the coming year. Republic provided a creative and scalable structure to achieve the customer-centric approach of the bank.
The company provides light industrial staffing solutions for manufacturing companies located in automotive, oil field service and logistics industries providing their diverse customers with maintenance, repair and emergency work services. High growth rates and customers requiring extended payment terms meant that the company quickly outgrew their existing lending facility. To enable the company to continue to take advantage of growth opportunities Republic provided a bridge growth facility.
Republic provided a $4.5 million Receivables Purchase Line of Credit facility without any covenants or cash flow requirements. Republic’s initial funding was able to provide the company with the ability to fully repay the bank facility and have over $1 million in additional working capital. In a short few months since commencing their facility with Republic, the company is on pace to double their revenue in the second half of the year compared to the previous year. Their CEO attributes it to Republic, “As a result of our increased confidence meet our growing payroll demands, we are able to take care of our employees while growing our business.”
“Temporary Staffing companies are the lifeblood of the small businesses located throughout America. Republic is proud to support minority-owned and female-owned entrepreneurs,” said Stewart Chesters, CEO of Republic. “We have several customers that support the supply chains of the automotive, energy and transportation industries.” According to the Small Business Administration of the U.S. government, small businesses make up 99.7% of the US employer firms. Republic designed its team and products to support smaller and medium-sized companies.