Introduction
Staffing companies have heavy payroll cycles that can scare lenders. Yaw Capital structured a $3.9M SBA loan for a staffing firm acquisition.
The Challenge
- Payroll was the largest expense.
- Buyer had strong industry experience but limited liquidity.
- Seasonality required cash flow support.
Our Solution
Yaw Capital arranged:
- SBA loan with built-in working capital.
- Flexible repayment schedule.
- Seller note to minimize upfront injection.
The Outcome
Closed in 70 days. Buyer grew client base 30% in first year thanks to stabilized payroll funding.
Key Takeaways
- Staffing deals require lenders comfortable with payroll intensity.
- Working capital reserves are essential.
- Experience matters more than liquidity.
