How The DPI Group Overcame Financial Challenges with AR Financing: A Path to Sustainable Growth
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Fact-checked by: Bruce Sayer
Economic trends for 2025 point to a complex financial landscape with potential shifts in interest rates, market demands, and supply chains. Increasing uncertainty and disruptions magnify the challenge for businesses to maintain stability and stay competitive. Strong cash flow management is crucial for business resilience and growth, as demonstrated by The DPI Group’s recovery from financial distress to sustainable growth through AR Financing.
The DPI Group is a diversified social enterprise operating in the nonprofit sector. Their mission is to identify and create job opportunities for individuals with disabilities and other employment barriers. Facing the likelihood of a credit recall from its existing traditional lender, the organization needed a quick solution to rectify a destabilizing situation.
This article recounts the dramatic change in The DPI Group’s ability to enhance resilience and support growth by partnering with eCapital, a leading specialty lender dedicated to giving better, faster access to the capital businesses require.
The challenge
Businesses face the persistent challenge of maintaining operational and financial stability. Like many, The DPI Group (DPI) has had to navigate significant financial hurdles, including cash flow challenges and a strained financial structure.
Following a successful turnaround in 2017, the company engaged in a profitable venture that soon after turned unfavorable, resulting in a second significant financial setback. This ultimately led to DPI selling the venture in 2023.
At the time, DPI had an asset-based lending (ABL) line with a major national bank. However, borrowing beyond the bank’s comfort level and recent financial losses, put DPI’s credit line renewal in jeopardy. As a result, DPI needed a more adaptable financing solution to maintain liquidity and support ongoing operations. Tom quickly focused on AR Financing. “The flexibility and many benefits provided by AR Financing were instrumental to our decision making at that time,” said Tom Horey, CFO of the DPI Group.
The solution
AR Financing is a proven financial strategy to improve cash flow and rebuild financial strength. AR Financing’s straightforward qualification requirements prioritize the value of accounts receivables over a history of strong financial performance. DPI was a perfect candidate, with a balance sheet heavily populated with high-quality receivables, many from federal and state entities. Tom acknowledges the strategic fit, stating, “The advantage of AR Financing lies in the ability to borrow more, based on the value of your receivables.”
Once AR Financing emerged as the logical financing solution for DPI, Tom evaluated several providers. “We chose eCapital because of the team and the fact that their deal was, by far, the best,” he explained. eCapital’ stood out with their quick, knowledgeable responses, solution-focused approach, and customized facility.
Why AR Financing Is More Advantageous Than Traditional Financing
Beyond the obvious benefit of simplified qualification requirements, AR Financing offers significant flexibility and advantages over traditional financing. With the help of financial experts like eCapital, companies can access working capital aligned to their specific needs, business model and goals. Key benefits include:
- Ease of repayment: Fees are deducted from funds advanced, aligning with cash flow cycles.
- No debt: AR Financing is the sale of receivables, not a loan – there’s no added debt or dilution of equity.
- Cost savings: A professional collections team provides complimentary AR management with courteous service to protect the company’s customer relations.
- Credit protection: Recourse or non-recourse options are available. Non-recourse offers protection against customer defaults.
- Minimal covenants: AR Financing is a covenant-light financing arrangement providing maximum flexibility in deploying funds without lender oversight.
- Flexible credit limits: Credit availability grows with your businesses and invoice volume.
How eCapital Strengthened DPI’s Position for Growth
The decision to partner with eCapital was pivotal for The DPI Group. eCapital’s financing expertise, deep understanding of the company’s business model, and dedication to providing a solution tailored to their specific needs were instrumental in putting the company back on track. “If we weren’t sure on something, we could rely on the eCapital team. The flexibility and responsiveness we experienced were crucial in making the transition from a traditional bank smooth,” said Tom.
The partnership with eCapital provided DPI with more than the financial strength to overcome past difficulties – it also allowed them to focus on smart expansion strategies.
Knowledge and expertise: One of the critical reasons DPI chose eCapital was their deep understanding of the staffing sector, particularly in relation to government contracts. eCapital’s knowledge of the complexities involved in working with federal and state entities allowed them to provide a financing solution that was highly customized to DPI’s unique needs. By working with a lender who invested time and resources to understand their business model fully, DPI was provided with a financial solution that met its current needs and positioned the company for sustainable growth.
Enhanced borrowing capacity: eCapital’s unbilled facility feature was critical for DPI, enabling them to borrow against anticipated invoices, a considerable advantage since many of their government clients are billed monthly. This increased flexibility significantly improved their cash flow and helped maintain operational stability during periods of delayed billing.
Uninterrupted funding: eCapital was key in streamlining DPI’s transition from traditional bank financing to a specialized lending solution. Their team’s banking connections and responsiveness, fueled by a deep understanding of DPI’s business model and industry sector, made eCapital an essential partner in ensuring a smooth transition. eCapital’s flexibility and willingness to accommodate specific requirements made the switch smooth and efficient, paving a path for uninterrupted cash flow and the financial support necessary for growth and stability.
The DPI Group’s partnership with eCapital was a game changer. This partnership allowed DPI to access the capital it needed to overcome previous financial setbacks and strengthen its position for future growth.
Conclusion
Thanks to their partnership with eCapital and the flexibility provided by AR Financing, The DPI Group is better positioned for growth. They now have the financial flexibility to expand into new markets, hire more employees, and continue creating job opportunities for people with disabilities.
By leveraging receivables and not being hindered by a history of distress, DPI has overcome past challenges and laid the groundwork for sustainable growth.
With a solid financial foundation in place, DPI is now positioned to grow its impact across the nation, focusing on providing jobs and creating positive societal change. The strength of their partnership with eCapital has given them the ability to look to the future with confidence, making smart financial decisions that align with their mission of providing opportunities for those who need them most.
Read their story and learn how eCapital helped the company overcome financial challenges to emerge as a financially stable entity positioned for long-term growth.
Contact us for a free consultation with our financial experts and discover strategies to help your staffing agency grow and thrive in 2025.
Key Takeaways
- Increasing uncertainty and disruptions magnify the challenge for businesses to maintain financial stability and stay competitive.
- Like many, The DPI Group has had to navigate significant financial hurdles, including a turnaround in 2017, a failed venture in 2023, and ongoing financial strain.
- The company’s traditional bank lender signalled a need for change, indicating a pending credit recall.
- DPI’s transition to AR Financing and their partnership with eCapital became a game changer. This funding arrangement allowed DPI to access the capital it needed to overcome previous financial setbacks and strengthen its position for sustainable growth.
ABOUT eCapital
At eCapital, we accelerate business growth by delivering fast, flexible access to capital through cutting-edge technology and deep industry insight.
Across North America and the U.K., we’ve redefined how small and medium-sized businesses access funding—eliminating friction, speeding approvals, and empowering clients with access to the capital they need to move forward. With the capacity to fund facilities from $5 million to $250 million, we support a wide range of business needs at every stage.
With a powerful blend of innovation, scalability, and personalized service, we’re not just a funding provider, we’re a strategic partner built for what’s next.
James Poston
James is an experienced product expert in receivables financing, trade finance including purchase order financing, and asset-based lending. In his role, he oversees eCapital’s sales strategy by driving business development and creating unified revenue generation processes across our organization. Utilizing his experience in developing strategic relationships and nurturing strong networks, James is positioned to expand our company’s market footprint and industry associations.
Prior to joining the eCapital organization, James served as Executive Vice President and Sales Director for Bibby Financial Services Canada. During that time, he participated in all aspects of the organization including operations, credit and finally business development where he was named a 40 under 40 Award recipient by Secured Finance Network.
James is a Chartered Professional Accountant and Certified Management Accountant and holds a Bachelor of Economics degree with concentrations in international relations and political economy from McGill University.
