Case Study: Accounts Receivable Factoring Helps Construction Services Staffing Firm Grow Tenfold

 

Accounts receivable factoring, or invoice factoring, can be a major boost to staffing firms. One prime example is a New Orleans-based client operating in the environmental disaster response and construction sectors. My team has a long working history with this family-owned business; they’ve trusted our leadership since 2010 while at a former funding company, then they followed the founders and leaders of that company to Encore. 

Personalized Service & Fast Funding Deliver Unprecedented Results 

In 2010, this client faced significant restrictions with their traditional lender but our team saw the value of the business, its leadership team and its future, and brought them over as a client.

Shortly after becoming a client, while responding to the Deepwater Horizon oil spill, they needed an immediate exponential jump in cash flow to mobilize workers and equipment. Our team stepped in with the immediate increase in accounts receivable factoring along with boots-on-the-ground service to help them address their challenges and unlock incredible growth opportunities.

See why this client relationship has endured the past fifteen years! 

The Challenge  

The father and son team built their business on close-knit relationships and community-focused values, providing top-tier services in disaster recovery, environmental cleanup, and labor staffing.

Our first partnership occurred at a critical moment when they were looking for a new financial partner as they were being restricted by their current funding partner.  Shortly after moving over, we were asked to take a huge leap of faith as they were contracted to assist in cleaning up the Deepwater Horizon Oil Spill. The scale of the project meant they needed to hire and manage thousands of workers immediately.

They faced significant hurdles delivering on their core promises. Before they worked with the current leadership of the Encore team, they were up against: 

• High Capital Needs: They needed significant up-front capital to scale operations during high-demand periods like natural disasters and oil spills.  
• Payment Delays: Government contracts and environmental cleanup projects required navigating long approval processes and delayed reimbursements.  
• Seasonal Uncertainty: Their operations depend heavily on unpredictable events such as hurricanes or oil spills, requiring them to quickly scale up or down.  
• Restrictive Lending: Their initial lender-imposed limitations due to heavy concentration on a single debtor, constraining their available cash flow.  

These challenges meant they couldn’t mobilize resources effectively for critical projects, threatening long-term growth and stability.  

The Solution  

The leadership of the Encore team provided access to the necessary funds within two days, helping the client immediately spring into action. This was the first of many instances throughout our relationship where we worked together closely to quickly react to an opportunity. Through accounts receivable factoring and advanced lending solutions, we continued to help them unlock capital tied up in their receivables. This allowed proactive, agile responses during key operational periods.  

Feature Services for This Client 

• Funding-Only Payroll Factoring 

With cash flow freed up, they confidently grew their headcount and expanded their capabilities to meet demand with 5,000 workers on site. 

We are extremely invested in this client relationship. Over the last fifteen years, we’ve learned about their families, personal aspirations and business goals. When we’re a trusted partner, we can recommend proactive solutions to guide clients to future success. 

“We were able to put a deal together with them in about two days, a tight timeline they needed us to meet. They’re a perfect example of how fast, easy access to cash can make a huge impact on cash flow and growth.”– Danny Goldstein, Chief Operating Officer, Encore Funding

The Results

This client grew their outstanding accounts receivable from $600,000 to $5 million within five years with accounts receivable factoring and other strategic support. Over the last fifteen years, they have had the same dedicated Senior Account Executive, Maryanne Gustkey, whose support enabled exponential growth for both the construction and environmental arms of their business.  

We’ve given them the tools they need to grow to accomplish:  

• 10x growth in financial capacity from $600K to $5M in AR.  
• A sustainable flow of projects, including contracts with FEMA, Shell Oil, and various state governments.  
• Recognition as a first responder for oil spill recovery and disaster cleanup, solidifying their position as an industry leader.  
• The ability to build 800+ homes annually in storm-impacted areas, with project timelines as short as 6–10 weeks per home. 

Through our expertise, this client has also gained the freedom to stop worrying about finances and focus on operations and delivering superior service. What began as a small labor company has blossomed into multiple specialized businesses. Their close-knit team, including childhood friends, has become a powerhouse in the industry with long-standing relationships. 

Access to flexible, dependable funding was a turning point to reach new heights for this family business. If your staffing firm requires cash flow to support rapid growth and meet demand during critical periods, my team is ready to support.  Apply here to overcome hurdles in your industry and fuel your vision of success.