Who we fund
Staffing Agency Financing to Cover Payroll While Clients Pay
Yes, staffing agencies can get funding, and payroll funding through invoice factoring is one of the most common tools in the industry. Agencies pay workers weekly while clients pay on net terms, so the faster you grow, the more cash you need to carry.
Get matched: staffing
The reality
Cash-flow challenges we hear every day.
Weekly payroll against 30 to 60 day client terms
Temporary workers get paid every week, but clients often pay invoices a month or two later. Each new placement adds to the gap.
Payroll taxes and workers' compensation
Employer payroll taxes and workers' comp premiums are due on fixed schedules, and missing them carries serious penalties.
Growth that strains cash
Winning a large new client can mean dozens of additional workers on payroll before the first invoice is paid. Turning down work because of cash flow is common.
Client concentration
Many agencies rely on a few large clients. One slow payer can cause a cash shortfall across the whole business.
Best-fit funding
Funding that fits staffing.
Staffing factoring advances cash against approved client invoices, usually soon after timesheets are invoiced, so payroll can be met every week.
$10K–$5M‡1–3 days*An asset-based or revolving line tied to receivables gives larger agencies more flexibility as their client base grows.
$10K–$500K‡1–3 days*Working capital can fund recruiting, back-office hires, or a new branch when factoring alone does not cover the investment.
$10K–$1M‡24–72 hours*What lenders look for
Typical profile for staffing.
Lenders and factors focus on the creditworthiness of your clients, your accounts receivable aging, and proof that payroll taxes are current. Time in business and the owner's credit matter more for term loans and lines of credit.
Common uses of funds
- Meeting weekly payroll for placed workers
- Paying payroll taxes and workers' comp premiums
- Taking on a large new client contract
- Opening a new branch office
- Investing in applicant tracking and payroll software
- Hiring recruiters and account managers
What is payroll funding for staffing agencies?
Payroll funding is a form of invoice factoring where a funder advances cash against your client invoices so you can pay workers before the client pays you.
Can a new staffing agency get factoring?
Often yes, because factoring approval leans on your clients' creditworthiness. You will still need proper business registration and a process for collecting timesheets.
Do unpaid payroll taxes affect financing?
Yes. Tax liens or overdue payroll taxes can block financing because tax authorities may have priority over receivables. Most funders check this.
Can I factor only some of my clients?
Some factoring agreements allow you to choose which clients or invoices to factor. Others require all invoices from approved clients.
Do factoring companies collect from my clients?
In most factoring arrangements, clients are notified to pay the factor directly. Ask how the factor communicates with clients before you sign.
Funding for staffing, matched in minutes.
- Decisions in as little as 24 hours*
- $10K–$5M+ across 10 products
- No hard credit pull to apply
- One dedicated funding advisor