Case Study: From a Modest Start to Million-Dollar Success in Medical Staffing

How Healthcare Factoring Fueled One Staffing Agency’s Growth

Healthcare is often one of the most competitive industries for staffing. Our client, a medical staffing agency in Pennsylvania, faced unique staffing agency requirements and fierce contract competition, especially as a Pennsylvania Certified Small Diverse Business. Yet resourceful staffing entrepreneurs like our clients can overcome these hurdles with a strategic financial partner.

 

This agency’s path took them from a modest start to impressive success, including numerous awards won. We were blown away by the owner’s tenacious spirit and dedication to pounding the pavement for their next contract! Their creativity paired with payroll funding helped overcome challenges and achieve remarkable growth.

 

The Challenge: Fueling Growth in a Competitive Market

Our client, a medical staffing agency that places Registered Nurses (RNs) and Certified Nursing Assistants (CNAs), faced several significant hurdles when they were introduced to Encore Funding. With monthly billings of just $50,000, the agency struggled to maintain the cash flow necessary to meet payroll and pursue growth opportunities.

 

The medical staffing industry is known for its fierce competition. To stand out, the agency offers competitive pay and benefits.

 

Because they work with state-run facilities, they must adhere to rigorous documentation standards for worker credentials, background checks and drug testing. These essential requirements are costly to fulfill.

 

Additionally, the agency serves a variety of healthcare settings, including

• Pennsylvania Commonwealth Veterans Administration
• Hospitals
• Rehab centers
• Testing sites
• Long-term care facilities

 

Each presents unique staffing challenges and requirements, which makes it more difficult to remain profitable and grow. The Encore Funding team stepped in with fast, flexible healthcare factoring and comprehensive support.

 

The Solution: Strategic Healthcare Factoring and Flexible Capital

While healthcare factoring, or payroll funding, resolved this client’s immediate cash flow needs, Encore Funding provided much more than a one-time fix. This client gained a true strategic partner invested in their growth.

 

The Encore Funding hands-on service model gave their team time-saving support from day one. Our client gained consistent access to working capital to alleviate cash flow concerns and enable timely payroll for their expanded workforce. Encore also offered them term loans with flexible repayment terms because we recognized this staffing agency’s potential. This additional capital allowed the agency to secure larger contracts. They could cover upfront costs associated with credential verification, background checks, and drug testing.

 

Encore handled funding and financial oversight, which allowed the agency to focus on core business operations, client relationships, and growth strategies. This partnership approach fostered trust and enabled more strategic decision-making.

 

“This client is a textbook payroll factoring success story! The owner was staffing so many workers, that they had to implement a brand-new payroll software to keep up. They’ve always been an incredibly hard worker, pounding the pavement to land contracts and recruit; now we’re proud to support them so they can focus on more strategic growth plans.”

 

Feature Services for This Client

• Funding-Only Factoring

 

The Results: Explosive Growth and Expanded Capabilities

The partnership between the health staffing agency and Encore Funding yielded impressive results. From its modest monthly billings at the start of their relationship with Encore, the agency grew 2,000% (yes, they actually grew twenty times over)! Even as the healthcare landscape normalized, the agency maintained strong growth and has been able to secure new contracts that have kept their monthly billings stable.

 

With access to flexible capital, the healthcare staffing agency secured significant contracts with the Commonwealth of Pennsylvania. This dramatically expanded its services and client base. Additionally, an influx of capital ensured that the agency had the proper staff and materials in place to take service to the next level.

 

As of April 2024, the agency maintained a healthy financial position with a final increase in gross purchases of 120%. The agency owner could better focus on business development and client relationships because they knew Encore had the financial aspects under control. The Encore team’s support allowed the agency to adapt quickly to changing market conditions like demand surge and subsequent normalization.

 

“Encore Funding has supported me every step of the way and helped me take my business to a whole new level. Without Encore Funding, we would not have been able to grow to the capacity that we are today. Encore is always in your corner cheering you on to help support your business growth. They offer so many solutions for your company to support your professional and personal goals. Factoring, especially, has helped me to have the working capital that I need to cover my payroll costs and support our business growth and success. Encore Funding is a ‘can do’ attitude, solutions-based company that’s constantly working to find resources to help lead you to success. There is such a personal yet professional and individual approach to serving our company that it can be hard to explain. I like to describe it as though we are an extended family that is always there for each other when called on. Thank you, Encore Funding, for being there through it all.” – Owner, Pennsylvania-based medical staffing agency

 

This client’s success story shows the transformative impact of strategic payroll funding and advisory support for staffing agencies that face cash flow challenges in niche, competitive markets like medical staffing. Firms can rapidly scale and realize their growth ambitions with a trusted funding partner! Apply here to partner with Encore Funding to overcome hurdles and leverage growth opportunities.