Staffing Agency Unlocks $400K in Cash Flow Through Invoice Factoring

The Challenge

James K., CEO of a staffing agency in Chicago serving healthcare and logistics clients, was growing fast — but cash flow couldn't keep up. His clients paid on Net-60 and Net-90 terms, while his payroll obligations were weekly. With $400,000 in outstanding invoices and only $45,000 in the bank, he was weeks away from missing payroll. According to SCORE, 82% of small businesses that fail cite cash flow problems as a primary factor. A traditional line of credit wasn't an option — his personal credit score of 580 was below most lenders' minimums.

The Solution

Pro Capital matched James with an invoice factoring partner that evaluated the creditworthiness of his clients — not his personal credit score. The factoring company advanced 90% of the invoice value ($360,000), with the remaining 10% (minus a 2.5% factoring fee) released upon client payment. The facility was set up as an ongoing arrangement, giving James immediate access to capital on every new invoice.

The Results

• Converted $400,000 in receivables to $360,000 in immediate working capital
• Funded — payroll met without interruption
• Ongoing facility provides cash flow on every new invoice
• Company grew headcount by 35% in the following 6 months
• No new debt added to the balance sheet — factoring is an asset sale, not a loan