Case Study: Fueling Rapid Growth for a Government Staffing Firm
A representative example of how a federal staffing contractor used invoice factoring to meet weekly payroll against slow agency terms — and doubled its placed headcount without borrowing.
Illustrative example. Figures are representative and not tied to a specific named client.
The challenge
A government staffing firm placed credentialed personnel on federal contracts and billed the agencies on Net-45 terms. The problem is structural to staffing: the firm had to pay its placed workers every single week, but the agency wouldn't pay the invoice for a month and a half.
Every new placement widened the gap. The more the firm grew, the more cash it had to float between weekly payroll and slow agency payment — and a fixed bank line, sized to past financials, couldn't keep pace with the hiring it wanted to do.
The solution
The firm opened an invoice factoring line with Encore. Approval came within 48 hours, with underwriting based on the federal agencies' creditworthiness rather than the staffing firm's balance sheet.
Each weekly invoice was advanced up to 90% of its value almost immediately, giving the firm reliable cash to meet payroll for its placed workers. When each agency paid 45 days later, the advance settled and the firm received the remainder, less a transparent fee. There was no daily-draw repayment like a merchant cash advance, and no debt added to the books.
The result
Freed from the weekly cash crunch, the firm aggressively pursued new placements. Over the year it roughly doubled its placed headcount, taking on additional roles across multiple agency contracts that it previously couldn't have staffed.
Because the factoring line scaled with invoice volume, the firm never had to pause hiring to wait on a credit-limit increase. Payroll was dependable, growth was self-funding, and ownership stayed fully intact.
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