Temporary employee company Outsource International is looking to make "staffing" securitization a part of its overall refinancing plan for 2000.

If its lenders agree that asset-backed financing is the way to go, the market should see a steady flow of deals from the Deerfield Beach, Fla.-based temporary placement company, sources said.

Outsource recently performed a $50 million accounts receivable securitization based on money owed them by companies that have Outsource-placed people working for them.

The way it works is simple, according to Scott Francis, CFO for the company. "We send somebody to work for a specific company, and we pay the worker and then the company pays us," Francis said.

Outsource sells its receivables to "other entities," which in turn advance money on the purchase of receivables at commercial-paper rates until the ultimate receivables are collected and paid back.

Francis would not name the lenders involved in the discussions.

Previously, the company was selling its expected cash streams exclusively to Eagle Funding, a subsidiary of BancBoston. Outsource will now make receivables sales to its syndicated lenders until the end of the year when "we expect to be refinanced in total," Francis said.

"A couple of the prospective lenders we've been talking to have expressed an interest in doing something very similar to what we've been doing," said Francis of Outsource's securitization efforts. "What we do [in terms of deals] largely depends on what our lenders want," he said.

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