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 payroll obligations were weekly. With $400,000 in outstanding invoices and only $45,000 in the bank, he was weeks away from missing payroll. A traditional line of credit wasn't an option — his personal credit score of 580 was below most lenders' minimums.

The Solution

ORP Group matched James with an invoice factoring partner that evaluated his clients' creditworthiness, not his personal credit. The factoring company advanced 90% of the invoice value ($360,000) within 48 hours, with the remaining 10% (minus a 2.5% fee) released upon client payment. The facility was structured 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 within 48 hours — 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