Temporary Staffing Company Receives $6.75 Million Asset-Based Loan from Republic Business Credit

Loan supports employee-owned company's immediate working capital needs and future growth

NEW ORLEANS, April 17, 2024 /PRNewswire-PRWeb/ -- Republic Business Credit provided a $6.75 million asset-based loan to an award-winning temporary staffing company that outgrew its current bank lender.

The Tennessee-based company provides staffing solutions for light industrial, administrative, information technology, and essential healthcare workers. It has more than 30 locations nationwide, has been in business for more than 25 years and is owned by its employees and management team.

The company's long-time, existing lender reached out to Republic's parent company, Renasant Bank, when it was clear the company would need increased working capital that traditional lending could not accommodate. The company was experiencing cashflow challenges due to inconsistent customer demand combined with staffing recruitment shortages. Temporary staffing is a leading economic indicator. With historic low unemployment and rising interest rates, companies often prefer temporary hires over full-time employment.

Republic, which has experience providing fast and effective funding solutions to temporary staffing companies across the country, was the ideal partner to step in and assist this company.

"When Renasant connected us with this staffing company, we knew we would be able to provide the increased working capital availability that their incumbent bank was providing," said Republic Senior Vice President of Sales, Leigh Guglielmo. "Republic was uniquely positioned to extend an asset-based loan that not only supported the company's payroll needs, but also provided options to continue growing with their manufacturing customers."

The $6.5 million asset-based loan has an accordion feature to the agreement in the event of company growth combined with no cashflow related covenants. This structure will provide the immediate availability and long-term flexibility that the company needs to recover and thrive.

"We increased their availability by more than 25%, which is huge for a working capital dependent temporary staffing company, not to mention were able to set up the facility within five weeks of our initial engagement," said Republic President Robert Meyers. "Our speed and industry expertise makes us an excellent partner to companies that find themselves needing funding solutions when traditional banks aren't the best fit."

The structure of the loan allowed the company's long-time lender to maintain the existing treasury for three of its operating accounts while Republic provided the working capital line.

"Republic was able to tailor a solution that supplemented the company's line of credit, making it possible to cover existing costs while planning for the next phase of development," said Melody Vollman, Senior Vice President, Renasant Bank/Southeastern Commercial Finance. "We're proud to work alongside Republic on solutions like this that work."

Asset-based loans are common within the temporary staffing industry, which experiences frequent and at times unpredictable fluctuation. Republic has partnered with numerous staffing companies to provide similar solutions.

About Republic Business Credit

Republic Business Credit is a nationally recognized commercial finance company supporting the working capital requirements of companies nationwide, including private equity and entrepreneurial businesses. Republic provides asset-based lending, e-commerce, ledgered lines of credit, factoring and Fast AR Funding. Republic partners with its clients to provide up to $15 million in senior credit facilities to rapidly growing businesses, start-ups and companies experiencing recoverable distress. Republic is recognized by the Secured Finance Network as one of the largest finance companies in the United States of America. Republic is proud to be headquartered in New Orleans with additional offices in Chicago, Los Angeles and Houston. Republic is a wholly owned subsidiary of Renasant Bank.

Media Contact

Emma Amorose, Republic Business Credit, 14128079236, [email protected], republicbc.com
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SOURCE Republic Business Credit