“If we want to escalate our growth we can do that, because we will have the cash flow. This is a great funding model in good times and in bad.”
AG Globe Services, with HQ in Toronto, is a Recruitment Process Outsourcer (RPO) supporting many businesses with qualified people for multiple roles primarily within the IT and Healthcare sectors.
While Covid-19 has impacted their business due to many clients scaling back on hiring, it has also presented opportunity particularly as Healthcare providers race to protect populations in their care. One such opportunity, to provide clinical and non-clinical staff across more than 20 facilities in the State of Georgia, highlighted a real challenge – how to generate the cashflow to scale to meet the significant demand for temporary staff. AG Globe pays its contract staff on a weekly or bi-weekly basis, but the project invoices are paid on 30-90 day terms.
“Employees have to be paid on time. We needed the reassurance that we could do that and do so even if there was a delay in our invoices being paid. Without a reliable funding facility in place we couldn’t take on the scale of this contract and couldn’t grow as the opportunity for new business grew”, said Scott Donoghue, CEO of AG Globe. “Accelerated Payments introduced me to Invoice Finance and that has been a game changer. It’s a working capital management tool for us now.”
AG Globe Services has a team of 15 talented people on this project, managing recruitment, compliance and onboarding for all functions needed, from security guards to respiratory therapists. Scott says likes many businesses he knows, his first port of call for funds was to go to the banks for a line of credit or to borrow money from private investors, but he never considered invoice financing or factoring before. “Even though you have to pay a fee, the ROI is so much higher – you have to pay a little bit to get a lot. We can go to the Bank but we wouldn’t get the funds we needed. And the great thing is since our invoices are quite large they give us more wiggle room for growth”, says Scott. “Accelerated Payments can also facilitate us trading in the US, so the money does not have to be transferred back and forth into different currencies. And the EDC protects 90% of the invoice value which gives us peace of mind if a company were to go bankrupt.”
Scott also values the partnership nature of the arrangement with Accelerated Payments. “We are partners in this process. Accelerated Payments are taking risks on our invoices, so communication both ways is really important. They are easy people to talk to, transparent and very supportive of our business. If we do want to escalate our growth, we can do that because we will have the cash flow. We wouldn’t be in this position without them”.
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