Make Every Payroll While Clients Pay on Their Own Schedule

Staffing agencies face a cash flow gap that is built into the business model itself: temporary and contract workers must be paid every week, while the clients they are placed with typically pay invoices in 30 to 60 days. The gap never closes on its own -- in fact, it widens as the agency grows, because every new placement adds payroll cost today against revenue that arrives one or two months later. Staffing factoring, often called payroll funding in the industry, addresses this structural problem by converting approved client invoices into immediate cash on every billing cycle. Because staffing invoices are backed by client-approved timesheets for work already performed, factoring companies treat them as some of the strongest receivables in any industry. Advance rates on staffing invoices often exceed 90 percent, at the high end of the 80 to 95 percent range typical across factoring generally. Fees commonly run about 1 to 5 percent per 30 days outstanding, and pricing generally improves with volume. Many factoring companies that specialize in staffing go beyond funding: some bundle invoice processing, timesheet verification, collections follow-up, and funding schedules aligned to your payroll cycle, effectively serving as a back office for growing agencies. Underwriting focuses primarily on the credit quality of your client companies rather than the history of the agency itself, which is why startup and fast-scaling agencies are a core market for this product. If your agency is turning down placements or hesitating on larger contracts because of payroll pressure, factoring is the funding structure built specifically for that problem.