Recruiter.com Group Inc revealed that it has signed an Accounts Receivable-backed factoring agreement to support its growth from Bay View Funding, a subsidiary of Heritage Bank of Commerce, a top community business bank in the heart of Silicon Valley.
The New York-based company said the new $3 million factoring facility will provide capital in an amount that is equal to 85% of Recruiter.com's gross eligible receivables. On December 31, 2021, Recruiter.com had $5.65 million of accounts receivable, net of allowance for "doubtful accounts outstanding," said the company.
"This arrangement is a good source of non-dilutive capital for Recruiter.com that accelerates receipt of our expanding receivables from a high-quality partner and bank subsidiary," Recruiter.com CEO Evan Sohn said in a statement.
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Meanwhile, Andrew Aquino, who is the executive vice president of Bay View Funding, noted that the firm is “excited” to work with Recruiter.com which has high-quality clients and “growing revenue, as well as strong long-term growth prospects.”
"We look forward to supporting Recruiter.com's operations and continued growth," added Aquino.
"We are confident that our capital strategy will continue to drive us toward the achievement of our 2022 goals and objectives and are committed to a continual process of strengthening our financial processes and controls " said Recruiter.com CFO Judy Krandel. "To that point, we would like to take this opportunity to welcome our new Vice President of Finance, Said Bakiev, CPA, to lead our internal accounting and finance function."
Bakiev, a senior finance and operations executive, has over 20 years of experience leading startups, and rapidly growing companies through complex financial transactions. His background includes senior management, accounting, audit, advisory, and M&A work at companies such as Arthur Andersen, Ernst & Young, Renaissance Capital, Intertek, and most recently HungerRush, a software as a service (SaaS) company.
Recruiter.com Inc is disrupting the $120 billion recruiting and staffing industry by combining an artificial intelligence (AI) and video hiring platform with the world's largest network of over 27,500 small and independent recruiters. Businesses of all sizes recruit talent faster using the Recruiter.com platform, which is powered by virtual teams of on-demand recruiters and video and AI job-matching technology.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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