Case Study: Light Industrial Payroll Funding Fuels Startup Success

Access to Fast Cash & Partnership Creates a Competitive Edge 

In the bustling and saturated California staffing market, one startup faced a daunting task: establish operations and thrive amidst stiff competition. The two co-founders have over a decade of experience from various roles within staffing companies. However, owning a staffing firm was a new venture.  

Referred by an industry acquaintance, the co-founders found their solution in Encore Funding. What began with nominal weekly billings at the company’s inception in April 2023 has grown to over four times that in less than a year. Read on to learn how this firm defied the odds and flourished in a saturated market by leveraging light industrial payroll funding and expert support from Encore Funding. 

The Challenge 

The California staffing industry is fiercely competitive. With notably high turnover rates and the prevalence of employee rollover – where temporary workers migrate en masse from one staffing company to another – this client faced several significant threats. To mitigate this risk, the startup had to ensure competitive pay and benefits. While this helped retention rates, the founders were concerned that they wouldn’t always have the cash flow they needed to cover payroll. 

On top of this, margins in the light industrial sector were razor-thin. Competing on price alone wasn’t an option so the founders knew that exceptional customer service would be their point of differentiation. Additionally, California’s complex and costly workers’ compensation system forces many staffing firms to use Professional Employer Organizations (PEOs) for compliance.  

The Solution 

The key was strategic light industrial payroll funding solutions and expert support. Payroll funding alleviated cash flow issues and freed money for growth initiatives, both necessary to thrive in the competitive California market. 

The Encore Funding team also vetted this client’s customers for creditworthiness. Many businesses that contract staffing agencies may not have good credit, so our team helped this client avoid working with less-than-stellar customers. The co-founders didn’t need to run credit reports or perform due diligence while prospecting; the Encore Funding team handled both. This empowered the firm to secure favorable terms and optimize markups, enhancing profitability in a competitive environment. 

“This is a model client within Encore’s portfolio! They hit the ground running, and with Encore’s support, they’ve met their weekly payroll and other financial obligations, which has resulted in their success. They’ve grown exponentially in a short period of time, and this can be partially attributed to their day-to-day use of our online reporting system. They have successfully managed their receivables, and it shows! Their growth not only underscores the strength of the partnership between our two teams, but also speaks to our commitment to delivering financial support that drives our clients’ success.” – Liz Gretzler, Account Executive, Encore Funding 

Featured Services for This Client 

• Full-Service Payroll Factoring 

The Results 

This client’s results speak volumes. Since April 2023, they’ve grown to over four times their initial weekly billings in less than a year! When they offloaded credit management responsibilities and streamlined their cash flow, the co-founders redirected their energy towards delivering unparalleled customer service – a critical differentiator in their price-sensitive market. 

Our personalized attention and tailored solutions not only facilitated the firm’s initial growth but their future growth, too. We’re prepared to provide private funding as soon as they need it. Thanks to their dedicated account executive, Liz Gretzler, the founders have day-to-day support and guidance readily accessible. Now, this light industrial staffing firm is set up to navigate challenges and seize opportunities to effectively grow their business. 

“We are pleased and delighted to be able to work with Encore. As an upcoming business, their onboarding process and competitive rates were such a relief. Most importantly, we thank them for always being responsive with any and all of our concerns in such urgent matters. Beyond grateful for allowing and trusting our business!” – Cindy, President of a California light industrial staffing firm

In a competitive industry landscape, payroll funding coupled with expert support can be the most streamlined catalyst for success. Apply here to overcome operational hurdles and capitalize on opportunities to unlock your next level of growth.