A rapidly growing Florida-based staffing firm turned to invoice factoring to unlock the working capital it needed to keep up with demand, fund payroll, and confidently pursue larger contracts. By partnering with Universal Funding Corporation, the company transformed slow-paying invoices into a steady source of cash and grew its factoring facility from an initial $200,000 to a $5 million line.
Background: Growth Outpacing Cash Flow
The firm operates in the cleaning staffing industry, where weekly or biweekly payroll must be met long before clients pay their invoices. As the company won more contracts, it quickly ran into a familiar challenge: cash flow timing. Clients often paid in 30, 60, or even 90 days, but employees needed to be paid every week.
Rather than turning down new opportunities or taking on additional debt, the company chose invoice factoring to bridge the gap between invoicing and payment.
Funding Timeline: From $200,000 to $5 Million
The relationship began in January 2021 with a $200,000 factoring line, giving the firm immediate access to working capital tied up in receivables. As sales and receivables expanded, the line was increased in stages to support continued growth:
- January 2021: initial $200,000 line
- September 2021: increased to $500,000
- January 2022: increased to $1,200,000
- March 2023: increased to $3,000,000
- January 2026: increased to $5,000,000
Each increase was driven by the firm’s strong performance and the growing volume of invoices to factor. Instead of waiting months for customers to pay, the company accessed funds as soon as invoices were generated, allowing working capital to scale alongside revenue.
“Staffing firms like this one are exactly the kind of high-potential businesses invoice factoring is built for,” explained Jeffrey Kinservik, VP of Sales. “By steadily increasing their facility as their receivables grew, we helped make sure cash flow never stood in the way of taking on that next contract or making payroll. Our goal has been to give them the confidence and working capital to say ‘yes’ to growth, instead of worrying about when a check will arrive.”
RELATED: Staffing Firm Uses $200,000 Funding to Power Growth
Funding that Grows as Your Business Grows
Over the years, factoring became a core part of the company’s growth strategy. The ability to consistently convert invoices into cash created room to:
- Take on new and larger contracts without worrying about payment delays
- Support a higher headcount across multiple job sites
- Smooth out cash flow during periods of rapid expansion
This “growth loop” meant that more contracts led to more invoices, which could then be factored to further expand capacity.
Tangible Benefits for the Staffing Firm
With a larger line and reliable advances on receivables, the company realized several key benefits:
- Hiring: It could bring on additional employees quickly to fulfill new contracts.
- Payroll: The firm met payroll on time, even when clients took longer to pay.
- Capacity: It was able to confidently accept more and larger contracts, knowing working capital would be available.
For a staffing company, the difference between saying “yes” or “no” to a new contract often comes down to whether there is enough cash to cover several payroll cycles. Factoring turned that uncertainty into a manageable, predictable process.
RELATED: The Benefits of Staffing Factoring
Your Partner for Fast, Flexible Business Financing
Universal Funding partners with businesses nationwide to provide reliable working capital solutions through invoice factoring. Whether a company is managing rapid growth, cash flow gaps, or seasonal fluctuations, Universal Funding’s tailored funding programs help business owners stay focused on what they do best—running and growing their companies.
Don’t wait 30, 60 or 90 days for customers to pay. Get an advance on your outstanding
invoices with invoice factoring. Turn waiting into working capital today!
