NEW YORK, Sept. 11, 2012 /PRNewswire/ -- Capital Business Credit LLC (CBC) (www.capitalbusinesscredit.com), a vertically integrated financial products and services company, announced today it has created a financing platform specifically for staffing firms.
The platform was created to address the growing need for staffing firms to access working capital. According to Investors.com, temporary work has risen by 44.5 percent since 2009. In Q4 2011 and Q1 2012, 668,000 of the 1.2 million jobs created were temporary (according to Bloomberg LP).
In general, staffing firms pay their employees on a daily, weekly or bi-monthly basis, while their customers pay them once a month; this presents a working capital challenge. CBC will provide revolving credit facilities between $1 million and $10 million to ensure that staffing firms have the capital they require to manage and grow their businesses.
"Temporary staffing is a vital component of the American economy," said James Janesky, director, senior research analyst for Avondale Partners. "Historically, following an economic downturn, businesses first turn to temporary staffing to fulfill their requirements before hiring new, full-time employees. The return to modest economic growth following the most recent recession has proven to be a boon for the temporary staffing industry, particularly due to hesitancy about permanent hiring."
"As with other industries that are required to meet their accounts payable obligations prior to receiving payments from their customers, factoring and asset-based lending products present a reliable solution to the staffing sector," said Marc Adelson, president and chief executive officer of Capital Business Credit. "With traditional bank lending remaining anemic, Capital Business Credit is filling a void in the marketplace that will enable staffing firms to provide more temporary employees to more businesses, ultimately creating jobs."
As a non-bank lender, CBC provides its clients with a variety of financial products and services including factoring, trade finance and asset-based facilities. Due to the structure of the company and its experienced management team, CBC can often make lending decisions faster than other lenders.
About Capital Business Credit
Established in 1988, Capital Business Credit LLC (http://www.capitalbusinesscredit.com/) is a commercial finance company specializing in providing creative supply chain financing solutions. The Company's service offerings include: full-service factoring; immediate cash for receivables; single debtor credit coverage; letters of credit; accounts receivable management services; inventory lending; asset-based lending; and international financing. Capital Business Credit is based in New York, with offices in Hong Kong; Los Angeles; Charlotte, NC; and Ft. Lauderdale, FL.
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SOURCE Capital Business Credit