How Interstate Business Capital Helped a Medical Staffing Company Unlock Growth Through Factoring

Every business faces its own set of financial challenges, especially in the early stages. At Interstate Business Capital (IBC), we believe that no obstacle is insurmountable when paired with the right financial strategy. This belief was put into action when we partnered with a medical staffing company struggling with cash flow constraints and limited funding options. Here’s how we tailored a factoring solution that transformed their challenges into a springboard for growth.

The Client: A Promising Medical Staffing Company

Our client specializes in providing occupational, rehabilitation, and speech therapy professionals to hospitals and rehabilitation centers. Although they had successfully secured a business incubation loan to launch their company, that very loan became a hurdle: it came with a blanket UCC filing that severely restricted their access to additional capital.

Key Challenges

The company’s financial situation presented three major challenges:

1. Restricted Capital Access: The blanket UCC filing tied up their assets, preventing them from securing further funding.
2. Cash Flow Struggles: As a company just over a year old, consistent cash flow was critical—especially to meet weekly payroll obligations.
3. Limited Financing Alternatives: Due to their short operating history, traditional credit lines and loans were off the table.

Turning the Tide: Our Strategic Approach

While the challenges were significant, the company also had solid financial management practices in place, which worked in their favor:

• Up-to-date income statements and balance sheets
• Filed taxes for the previous year
• Real-time accounts receivable (AR) and accounts payable (AP) aging reports

These elements allowed us to fast-track the underwriting process. Additionally, the company’s existing lender agreed to subordinate the AR assets, paving the way for us to provide factoring services.

The Solution: A Customized Factoring Facility

IBC worked collaboratively with the client to:

• Evaluate Financial Health: By analyzing their financial statements and cash flow patterns, we gained a clear picture of their immediate and long-term needs.
• Secure Collateral: Through negotiations with their current lender, we were able to position the AR as acceptable collateral for a factoring arrangement.
• Design a Tailored Facility: The factoring solution was structured not only to address current payroll and operational needs but also to support projected growth through year-end.

The Results: Stability and Growth

With the factoring facility in place, the client quickly experienced the benefits of reliable cash flow:

• Weekly payroll needs were consistently met
• Day-to-day operational expenses were covered with ease
• Confidence and capital to focus on expansion and client acquisition

This success story highlights how a well-structured factoring solution can be a game-changer for businesses facing financial constraints. At IBC, we don’t just offer capital—we provide customized financial strategies that align with each client’s goals. For this medical staffing company, that meant turning restricted funding access into a thriving, growth-ready future.

Need a tailored financial solution for your business?
Let’s talk. Interstate Business Capital is here to help you move forward.