The Business

A healthcare staffing agency in Atlanta has built a reputation for placing travel nurses and per-diem clinical staff at hospitals and medical facilities across Georgia. After four years of steady operations, the company achieved explosive growth, reaching $4.2M in annual revenue—a 40% year-over-year increase. Demand for nursing staff was at an all-time high, with multiple hospitals requesting increased placements.

The problem was structural: the staffing model required the agency to pay nurses weekly, but hospitals paid the agency on net-45 terms. This created a significant working capital gap during rapid growth. The company had capital to pay staff, but the net-45 payment terms meant cash was continuously tied up in payroll before client payments arrived.

The Challenge

The gap was growing to $80,000-$120,000 per week during peak growth periods. The CEO approached her bank for a working capital line of credit, but was declined. The bank's rationale was concerning: the bank said the growth was "unsustainable" without two years of profitability at the new revenue level. This rejected her outright and killed the company's ability to pursue new contracts, even though revenue and placement rates were clearly performing.

Pain Points

  • Cash flow gap of $80-120K per week during growth surge
  • Growing from $3M to $4.2M revenue created payroll timing mismatch
  • Bank declined application citing "unsustainable growth" concerns
  • Needed funding in under a week to avoid turning down new contracts

The Mondra Capital Approach

We took a different approach from the bank. Rather than questioning the sustainability of growth, we analyzed the trailing six months of bank statements and deposit activity. The data showed consistent, predictable deposit volume from hospital clients even during the growth phase. More importantly, the revenue increase was tied to genuine demand from established healthcare systems, not speculative projections.

We identified a term loan lender who specializes in service businesses with invoice-backed revenue. These lenders understand that staffing and HR services can grow rapidly when demand exists. We structured a $350K term loan with an 18-month amortization and no prepayment penalty, ensuring the CEO could pay it off early if cash flow improved, which it did.

"We were turning down new contracts because we couldn't cover payroll. Mondra got us funded in four days and we haven't turned down work since." CEO, Healthcare Staffing Agency, Atlanta

The Outcome

Results Achieved

  • $350K term loan funded in 4 business days
  • 18-month term with $19,400/month payment
  • Accepted 3 new hospital contracts within 30 days
  • Revenue reached $5.8M annualized by year-end
  • Eliminated payroll processing delays and contract limitations

With capital in hand in four days, the CEO immediately began pitching for new contracts. Within 30 days, the company signed three new hospital contracts that had been pending. The influx of new placements drove revenue to an annualized $5.8M by the end of the year—a 38% increase from the prior year. The payroll gap was manageable with the term loan in place. By month 12, the company had generated enough profit to pay off the entire loan early, though maintaining it provided valuable flexibility for seasonal demand fluctuations.

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