Home: Message List - Growing IT Consulting/Staffing firm in need of $$$$

Re: Growing IT Consulting/Staffing firm in need of $$$$

capitalcg — Fri, 11 Jan 2008 22:39:06 GMT

Our company works with IT contracting/staffing firms in financing their receivables. Yours is a classic case to other companies we have seen. Company gets a large order for contractors, client wants to be invoiced on a monthly basis and then takes 30 days to send the payment. But your employees/contractors need to be paid weekly or fortnightly.

You can contact me by email - ar@capitalcirclegroup.com; will be glad to discuss further with you. Hopefully we can be of help.

Re: Growing IT Consulting/Staffing firm in need of $$$$

mlebovits — Mon, 07 Jan 2008 05:51:31 GMT

One of the best sources of working capital for the staffing industry is the factoring (http://marshall-showmethemoney.blogspot.com/2007/06/read-fine-print.html) of accounts receivable. While often more expensive than a bank line of credit, it is usually faster to obtain and comes with fewer covenants and restrictions than other sources of debt financing. If you've accurately described your clients, a factoring deal can be arranged in a matter of days for the initial funding.

If you have more time to arrange for working capital, an SBA loan through the 7(a) Express program might be a consideration.

Marshall Lebovits
www.Funding911.com

Re: Growing IT Consulting/Staffing firm in need of $$$$

Lighthouse24 — Mon, 07 Jan 2008 01:42:26 GMT

Oh well . . . Nevertheless, it's great when fortune smiles that way! Hope you find some workable solutions.

Re: Growing IT Consulting/Staffing firm in need of $$$$

itdude — Mon, 07 Jan 2008 01:21:09 GMT

I don't think that anyone would pay for me to tell them that A) I had a long time professional relationship with my client and B) we were in the right place at the right time.

Re: Growing IT Consulting/Staffing firm in need of $$$$

Lighthouse24 — Mon, 07 Jan 2008 01:04:50 GMT

I'm thinking you could hold a seminar and charge admission for sharing (1) how you grew that much that fast without even having planned to do so, and (2) how you won a Fortune 100 AAA client in your first year of operation.

More seriously, what I had to do in a similar situation was (1) shorten the collection time for slow-to-pay clients by explaining the situation (I'd have to drop them in favor of clients that paid on time), and (2) staff new projects with some independent contractors rather than just my own employees initially (I actually used the IC arrangement as an employment "audition," because I got to see how they worked and interacted with myteams before actually hiring them).

Hope this helps. Best wishes.

Re: Growing IT Consulting/Staffing firm in need of $$$$

LUCKIEST — Mon, 07 Jan 2008 00:38:05 GMT

You are a 1 year old consulting firm experiencing explosive growth. Fantastic.
Do you have a Bookkeeper or an Accountant. How about a Cash Flow Plan.
Idea how you can get money for payroll. YES. Factor your receivables.
Put your 10 new consultants as consultants who get paid two weeks after you get paid.
Take out a loan. You WILL get offers for money.
LUCKIEST

Growing IT Consulting/Staffing firm in need of $$$$

itdude — Mon, 07 Jan 2008 00:26:55 GMT

We are a 1 year old consulting firm experiencing explosive growth -- which is great, but also a problem. Basically, all of my employees have high pay rates, and I gate paid on invoices 60-75 days later. So -- each employee needs to be floated about 20-30K before I get paid. My margins are fine, and my client is Fortune 100 S&P AAA rated company, so there is virtually no credit risk. But -- I just signed a deal for 10 new consultants!!! Any idea how I can get money for payroll?