AB Staffing Solutions specializes in the temporary contracting of physicians, registered nurses and other allied health professionals across the United States. Most of the hospitals and clinics the company works with are government funded, including VA hospitals and Indian Health Service hospitals.
AB Staffing was in a cash flow crunch. Funding rapid expansion used up much of its cash reserves while the government was stretching payments out by as long as 90 days. Because of the overdue government invoices, AB Staffing’s bank was unwilling to extend its credit line. This was frustrating because it needed the capital to fund opportunities to continue its growth and increase profitability.
As an alternative to an extension, AB Staffing’s bank suggested accounts receivable financing to help the company fuel growth. Bibby Financial Services stepped in with a more flexible recruitment funding solution
Bibby Financial Services provided a non-notification accounts receivable facility tailored to suit AB Staffing’s needs. Funding staffing boosted the company’s cash flow without the hassle of disclosing its source of financing to its clients.
AB Staffing was able to take advantage of many growth opportunities while it was a BFS client due to its improved cash flow. The company maintained an annualized growth rate of 50% for multiple years. Bibby Financial Services supported this growth, increasing the facility from $750,000 to $4.5 million.