https://www.youtube.com/watch?v=mT43r41dMB0
Bridging financial gaps for government contracts
with unbilled payroll funding
CLIENT OVERVIEW
This Richmond-based staffing agency is a seasoned government contractor with over 25 years of experience supplying highly specialized healthcare personnel to federal agencies, including the US Army, Navy, and Air Force. The company provides a full spectrum of workforce solutions to VA hospitals and other federally operated healthcare facilities across medical, dental, research, and administrative roles.
Having successfully fulfilled over 3,500 full-time equivalent (FTE) placements under federal contracts, the agency is a trusted partner for healthcare staffing on a national scale. However, while contract volumes have grown, so have the challenges of managing financial operations in an industry where payment cycles are inflexible, and cash flow volatility is high.
THE CHALLENGE
Government contracts, though reliable, require monthly invoicing in arrears, with payments typically arriving 30 to 60 days after services are delivered. Meanwhile, bi-weekly payroll for hundreds of healthcare professionals must be covered without interruption. This created a significant working capital gap between paying employees and receiving government reimbursement. Additional challenges included fluctuating contract volumes due to shifting federal budgets and seasonal healthcare demands, as well as upfront costs for compliance, credentialing, and onboarding that are incurred before any revenue is generated. Combined with billing delays and inflexible federal remittance cycles, this cash flow mismatch placed mounting pressure on operating capital—threatening both service delivery and the agency’s ability to scale with new contracts.
THE SOLUTION
To address these cash flow imbalances, the company partnered with eCapital to implement a custom unbilled accounts receivable facility tailored specifically to the cadence of their government contracts.
Key features of the solution included:
- Mid-month advances based on verified payroll data, allowing the agency to draw capital against services already rendered but not yet invoiced.
- Reconciliation of advances once monthly invoices are issued, keeping account balances accurate and transparent.
- Continuous access to liquidity, enabling uninterrupted payroll funding for medical professionals serving in high-stakes federal facilities.
This approach transformed the agency’s ability to manage cash flow with confidence. Instead of struggling to cover costs while awaiting reimbursement, the firm now operates with financial stability and predictable cash access.
THE RESULTS
Implementing eCapital’s unbilled facility eliminated payroll strain by ensuring the agency could consistently meet its bi-weekly payroll obligations for hundreds of healthcare professionals without disruption. With a stable and predictable source of working capital, the firm was able to pursue and fulfill new government contracts with confidence, supporting sustainable growth without the risk of overextension. This solution also reduced the agency’s reliance on costly short-term loans or credit lines, allowing them to operate more efficiently. As a result, financial leadership shifted focus from managing day-to-day cash flow crises to engaging in long-term planning and maintaining full compliance with federal contract requirements.
Through its partnership with eCapital, the Richmond-based healthcare staffing agency gained the agility and stability needed to thrive in a complex funding environment—ensuring that vital healthcare services continued without delay or disruption.
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