Since 2017, Dynamic Consulting Group (DCG) has been providing innovative operations and supply chain consulting, and workforce management, recruiting, and staffing solutions to some of the largest companies in North America. With a pool of nearly 700 highly-skilled contingent workers, DCG provides vital pieces to the food, beverage, consumer packaged goods, and medical industries’ workforce.
The rapid growth DCG’s worker pool – and the increasing demand of their clients – hasn’t come without challenges though.
“When we first started, we had a few smaller clients and a pool of 70 to 80 workers,” said DCG President Amar Bamra. “We had reasonable payment terms with those companies. Then we landed a large contract to provide line workers, operators, line leads, and supervisors at a large packaged-food facility. The payment terms were around 120 days.”
With payment from the client four months away, DCG found itself in a precarious position each week when it came time to make payroll.
“They asked for workers, we gave them workers,” said Bamra. “But soon cash flow became critical and to a point that it seemed like we were financing their payroll.”
For Bamra, the problem began to compound as the client requested more workers.
“When we started working with them last year, we placed 50 people,” he said. “Then it grew to 100 people in a few weeks. Next came a weekend shift requiring 90 more people. Then a night shift. Next thing we know, there are 500 workers on site.”
The payroll was growing, but the payment terms were still causing cash-flow problems.
As he began searching for a solution to the liquidity crunch, Bamra explored numerous funding options before landing on an early-payment program with Qwil powered by LSQ.
“The other financing options we looked at were just not as thorough or easy to use as Qwil,” Bamra said, “and no one that I dealt with was more professional than (Qwil Founder) Johnny Reinsch. It was quick and also very straightforward to get started and very transparent on the pricing.”
Integrations with SAP Fieldglass and TAPFIN and ease of use of the platform were also critical factors in DCG’s decision to give Qwil a try.
“Our clients were already using SAP, so we knew it would make the process to get started simpler,” said Bamra. The onboarding process was not that long. There was a quick authorization and an email to TAPFIN and we were off and running without much administrative or IT overhead. Once we started, the platform has been easy to use and the autopay feature ensures we get our payments consistently.”
One concern that the team at DCG had about an early-payment or other financing solution was the tracking and reconciliation of invoices. That transparency was lacking in many of the invoice finance solutions they researched.
“Once we started using Qwil, we had visibility into everything that was going on with our invoices; how much had been billed, how much had been paid, and how much was still open,” said Bamra.
Bamra credits Qwil with playing a role in DCG’s growth and maintaining positive relationships with the company’s clients.
“Qwil has made the contingent staffing side of our business run a lot smoother,” he said. “We have been able to keep our clients staffed with the workers they need and focus on expanding and not have to worry about cash flow.”
Editor’s Note: Qwil was recently acquired by LSQ, a leading provider of working capital finance and payments solutions. By leveraging Qwil’s deep proprietary embedded finance integrations and LSQ’s existing experience in serving contingent staffing and professional services firms, and credit and risk management, both entities are now able to serve more – and provide more comprehensive solutions to – clients.