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.
We're proud to work alongside Republic on
solutions like this that work.
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, ea@respublicagroup.com, republicbc.com
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SOURCE Republic Business Credit