Invoice Factoring Case Study

Imagine your business has the chance to sign a new customer that would double your revenue, but you don’t have enough cash to hire the new employees required to support the customer.

This is the exact problem recently faced by a client of ours, Florida Staffing, a U.S. staffing company. (While this factoring case is real, Florida Staffing is a fictitious company name, in accordance with a privacy agreement with the real company).

Florida Staffing originally came to Factor King when they were presented with the opportunity to take on a new customer that would increase their overall revenue from 150K to 300K / month.  Since allowing the potential business to simply slip away was not an option Florida Staffing knew they needed help.

After Florida Staffing completed our easy approval process, their customer was contacted and subsequently agreed to terms of net30 and to be billed at the end of each month. 

Using Factor King allowed Florida Staffing to factor the first invoice the same day they sent the invoice to the customer. This enabled Florida Staffing to receive the money they would have had to wait up to 60 days for--further enabling them to pay employees for the next 30 days. This would have been impossible without Factor King’s services.

After the first invoice it was smooth sailing. Each and every month Florida Staffing received advances that allowed them to be cash positive. Additionally—and most importantly--they were able to grow because they could continue to take on new business knowing that Factor King would be buying the invoice, paying Florida Staffing the cash, and handling all collections for them. Florida Staffing never had any issue paying their employees as business grew.  

What factoring did was to allow Florida Staffing to keep their employees happy and their customers free from burdening collection calls... all while growing the staffing company on a continuous basis.

Factor King has now been working with Florida Staffing for a little over a year. And when they started with FK their receivables were about 150k / month. Now, Florida Staffing brings in over 650K / month!  And they now take on new customers that no so long ago would have been out of the question.

What this factoring case study proves is that factoring is not only for businesses that run into a cash crunch, but more often for small and medium sized businesses, it provides a way for them to seize business opportunities that allow them to grow in ways they would have never thought possible.