https://www.youtube.com/watch?v=mT43r41dMB0
Powering staffing expansion for renewable energy boom
with payroll funding
CLIENT OVERVIEW
This established Texas-based staffing firm specializes in supplying skilled labor to the energy sector, offering contract, direct hire, and project-based placements across both traditional oil & gas operations and emerging renewable energy projects. With decades of experience and strong relationships across the industry, the agency connects certified welders, pipeline inspectors, rig operators, wind turbine technicians, and energy engineers with top energy companies across the region.
As renewable energy investments surged throughout Texas, particularly in wind, solar, and battery storage, the firm saw a dramatic increase in demand for its services. While the growth signaled major opportunity, it also brought significant financial strain due to the timing mismatch between expenses and receivables.
THE CHALLENGE
Texas has become a national leader in green energy generation, particularly in wind and solar power. This surge in renewable energy development sparked a wave of utility-scale projects across West and Central Texas, driving a sharp increase in demand for technical labor across construction, commissioning, and operations.
To keep pace, the staffing firm needed to rapidly onboard and deploy over 100 technicians across multiple sites, while covering substantial upfront payroll and onboarding costs. However, extended payment terms from Engineering, Procurement, and Construction (EPC) contractors—often 45 to 60 days—strained the firm’s liquidity. Despite the capability to scale, the company lacked working capital to cover payroll ahead of delayed receivables—putting placements, talent retention, and client service at risk.
THE SOLUTION
In 2024, Texas’s energy market reached a pivotal milestone, with wind and solar sources generating nearly 30% of the state’s electricity—highlighting the sector’s rapid transformation. This surge in renewable energy development sparked a wave of utility-scale projects across West and Central Texas, driving a sharp increase in demand for technical labor across construction, commissioning, and operations.
To keep pace, the staffing firm needed to rapidly onboard and deploy over 100 technicians across multiple sites, while covering substantial upfront payroll and onboarding costs. However, extended payment terms from Engineering, Procurement, and Construction (EPC) contractors—often 45 to 60 days—strained the firm’s liquidity. Despite the capability to scale, the company lacked working capital to cover payroll ahead of delayed receivables—putting placements, talent retention, and client service at risk.
THE RESULTS
To address this working capital gap, the agency partnered with eCapital, a specialty lender with a deep understanding of the staffing industry and energy sector dynamics.
eCapital implemented a tailored payroll funding facility aligned with the agency’s billing and payroll cycles. The solution allowed the firm to leverage approved timecards and pending receivables as collateral for immediate funding.
Key features of the facility included:
- Advance funding on verified receivables, providing liquidity without waiting for slow client remittances.
- A flexible structure that scaled with the agency’s invoicing volume and labor deployment levels.
- Seamless integration with payroll processing, ensuring uninterrupted payment to field staff.
This strategic financing partnership unlocked trapped capital and gave the agency the confidence and resources to grow in lockstep with client demand.
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