Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Scroll to top

Solving a cash flow crunch for a healthcare IT staffing company

Accounts Receivable Line of Credit
Contact Us Today
Healthcare professional using tablet in hospital setting

Situation

Formed in 2020, this growing staffing company places IT workers with a variety of healthcare systems across the United States. The company pays its workers twice monthly but only receives payments from customers approximately 45-60 days from invoice date. Rapid growth created a cash flow crunch as the company needed additional working capital to support their growing payroll. Despite the significant growth, the company was not yet profitable and was unable to secure a traditional bank line of credit.

Solution

In order to help an existing customer, the banker referred the company to Magnolia Financial. Twenty-four hours after receiving the preliminary financial information, Magnolia extended the company a $400,000 Accounts Receivable Line of Credit. Instead of worrying about the costs of carrying increased payroll, the company now has the working capital it needs to continue on its growth trajectory and expects to be profitable by the end of the year.

A Breath of Fresh Air

The Magnolia guys have a real ‘can do’ attitude. Marc Smith and his team are super responsive and upbeat. They can fund within a matter of days. They are always looking for positive opportunities for their clients. It’s a breath of fresh air to work with someone like that.

– Kerry Coker, Kamado Joe
View Customer Stories
Talk to a Loan Services expert.
Apply now for a solution that fits your needs, or contact us to speak with an expert directly.
Your company
Tell us your name
How can we contact you?
How much money do you need?
Share:

Explore More Case Studies

Person fabricating steel by welding
Leveraging quality Accounts Receivable for a specialty metal fabricator

Formed in 2017, this small business provides specialty metal fabrication and other welding services to a variety of customers across North and South Carolina.
Flatbed truck carrying construction equipment
Building capacity for operational growth for a construction equipment distributor

Headquartered in South Carolina, this distributor of refurbished construction tools and equipment sells to a variety of customers throughout the United States and Canada.
Grocery aisle with freezers containing frozen foods
Extending the cash flow of a frozen foods distributor

This North Carolina based company sells locally sourced frozen fruits and smoothie kits to a variety of customers across the United States.
Painting white wall gray with roller
Financing the growth of a commercial painting and drywall company

In business for less than one year, this early-stage company provides commercial painting and drywall services for a variety of homebuilders across the southeastern United States.