Case Study: Payroll Funding & Capital Fuel Client Acquisition Success

Sustainable staffing agency growth can be simpler than staffing entrepreneurs may think. One of our clients, a software and engineering staffing firm, is a perfect example.

This client serves primarily state and county government entities and became an Encore Funding client in October 2025, bringing with them an excellent portfolio of creditworthy public sector debtors. Their partnership with Encore began during a unique business expansion phase that would define their growth trajectory.

The Challenge  

This staffing agency faced a significant growth opportunity but lacked the necessary capital access to pursue it. They identified a strategic acquisition target that would expand their client base and market presence, but completing the transaction required substantial financial resources.

Without the ability to secure traditional financing, they risked missing a valuable opportunity to scale their business. The acquisition would bring eight new clients into their portfolio, but they needed a funding partner who could support both the transaction and their ongoing operations. This is where our team stepped in with staffing agency growth support!

The Solution  

We provided comprehensive strategic support and receivables funding to enable the acquisition. Our underwriting team conducted thorough due diligence on the acquisition target, vetting the prospect and performing the complex analysis needed to ensure it was a sound business decision.

Feature Services for This Client 

• Funding-Only Factoring 
• Strategic Consulting 

Through payroll funding and capital access, Encore freed up the resources necessary for the client to complete the transaction successfully. This staffing agency also gained direct access to Joel Adelman, our CEO, at a trade event and was thrilled to receive high-level strategic guidance. They’ve continued to tell us that they’re impressed by our personalized service and enjoy having one centralized point of contact at Encore.

The Results

The acquisition was completed successfully! This grew the client’s portfolio to eight clients under the new business unit. The partnership has positioned them for continued staffing agency growth and expansion, with Encore committed to providing the same strategic underwriting and funding support for future acquisitions.

The client expressed particular appreciation for the longevity and stability of our team, noting the long tenure of our employees. I’m always proud that I can tell new clients that we don’t just enable better cash flow, but act as a true funding partner and strategic advisor.

“As a provider of information technology services to municipal government clients, we were presented with an exciting opportunity to expand our business through a strategic acquisition that would significantly broaden our client base and market reach. However, the capital required for the transaction, combined with the ongoing demands of client retention and weekly employee payroll, posed a major challenge especially given the extended payment terms typical in government contracts.  

 Encore Funding stepped in as our true capital partner, providing the flexible payroll funding and receivables financing we needed to complete the acquisition seamlessly. Their thorough due diligence and strategic underwriting not only supported the transaction but also ensured we could maintain smooth operations without any disruptions.

Thanks to Encore’s reliable capital access, we successfully integrated the new clients, grew our portfolio, and continued delivering high-quality IT services to our government partners. What truly sets Encore apart is their personalized approach offering direct access to leadership, high-level strategic guidance, and a dedicated point of contact.

We’ve experienced no glitches in payroll or client payments, allowing us to focus on growth and retention rather than cash flow worries. Encore isn’t just a funder; they’re a committed partner invested in our long-term success. We’re grateful for their support and highly recommend Encore Funding to any staffing or service agency looking to scale.” – Managing Partner for a software and engineering staffing firm. 

Through our flexible approach to funding and strategic support, this client transformed a growth opportunity into reality while establishing a foundation for continued expansion. Are you ready for staffing agency growth? Apply here for funding or strategic support!