Business Funding for Staffing Agencies
Payroll is Friday. Client payment is Net 30. The warehouse wants 50 more temps next week but you're already stretched. The IT client just expanded their contract but you need recruiters to fill it. Staffing agencies live in the gap between paying temps weekly and collecting from clients monthly.
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Understanding Staffing Agency Finance
Staffing agencies face the most pronounced cash flow timing challenge in business. You pay temps weekly but collect from clients on Net 30-60 terms. This structural gap defines staffing finance.
The Payroll-Payment Gap
Staffing agencies fund 4-8 weeks of payroll before client payment arrives. A $100,000/week payroll creates $400,000-$800,000 in cash tied up in the timing gap. This is the core staffing finance challenge.
Growth Magnifies the Gap
Growth is expensive in staffing. Add 20 temps this week, fund their payroll for a month before payment. The bigger you grow, the bigger the gap becomes.
Invoice Factoring Prevalence
The majority of staffing agencies use invoice factoring. It's not a sign of weakness—it's the industry standard solution for the structural timing gap.
Client Concentration
Large contracts are essential for growth but concentrate risk. One slow-paying client can stress the entire operation.
Why Staffing Finance is Different
The weekly-pay, monthly-collect gap is the defining challenge of staffing finance.
Weekly Pay, Monthly Collect
Temps expect Friday paychecks. Clients pay Net 30-60. This is the fundamental staffing cash flow challenge.
Growth Costs Money
Landing a 50-temp contract is exciting until you calculate 6 weeks of payroll before first payment.
Client Payment Delays
The client is 45 days past due. Payroll doesn't care. Your temps need paid regardless.
Recruiter Investment
More recruiters mean more placements. But recruiter salaries precede placement fees by months.
Seasonal Surges
Q4 warehouse staffing doubles. Holiday hospitality spikes. Seasonal demand requires immediate payroll capacity.
Large Contract Startup
The enterprise contract could double your business. But funding 100 new temps for 6 weeks requires $400K+ in capital.
Financing Built for Staffing Agencies
Capital solutions structured around how staffing agencies actually operate. We understand payroll timing, invoice factoring, growth economics, and the reality that temps expect Friday paychecks regardless of client payment schedules.
Invoice Factoring
Convert staffing invoices to immediate cash. Bill the client Monday, fund payroll Friday.
Payroll Funding
Bridge the gap between payroll obligations and client payment. Weekly funding for weekly payroll.
Growth Capital
Fund expansion into new contracts, add recruiters, or scale operations.
Client Credit Focus
Factoring evaluates your client's credit, not yours. Strong clients enable funding.
Staffing Expertise
We understand staffing economics, placement cycles, and industry specifics.
Scale With Growth
Factoring lines grow with your billings. More placements, more funding capacity.
How Staffing Agencies Use Funding
Real scenarios where staffing financing enables operations and growth.
Weekly Payroll Bridge
Fund Friday payroll while waiting for client Net 30 payment.
Typical funding: Based on billings
New Contract Startup
Fund temps for a new major contract before first payment arrives.
Typical funding: $50K-$500K
Seasonal Scaling
Expand temp capacity for holiday, harvest, or seasonal demand surges.
Typical funding: Based on placements
Recruiter Hiring
Add internal recruiters to grow placement capacity.
Typical funding: $50K-$200K
Office Expansion
Additional locations or offices to expand geographic coverage.
Typical funding: $75K-$300K
Technology Investment
ATS systems, job boards, and recruitment technology.
Typical funding: $20K-$75K
Staffing Financing Options
Understanding the range of capital solutions for staffing agencies.
| Feature | Invoice Factoring | Bank Line | Working Capital Loan |
|---|---|---|---|
| Credit Focus | Client credit | Your credit | Your credit |
| Funding Basis | Invoices | Credit limit | Revenue |
| Scales With Growth | Automatically | Requires increase | Requires reapply |
| Approval Speed | 3-7 days | 30-60 days | 1-7 days |
| Funding Timing | Same day on invoices | On demand | Lump sum |
| Payroll Aligned | Yes | Flexible | No |
| Cost Structure | Per invoice fee | Interest rate | Fixed cost |
| Best For | Payroll timing | Variable needs | Fixed needs |
Staffing Agency Qualification Basics
General guidelines for staffing financing. Every situation is evaluated individually.
Operating Staffing Agency
Active temp, staffing, or recruitment agency with client billings.
6+ months operating
Monthly Billings
Demonstrated staffing revenue from placements.
$50,000+ monthly billings
Creditworthy Clients
For factoring, client creditworthiness is the primary factor.
Commercial clients
Business Bank Account
Business checking showing deposits and operations.
3+ months statements
Payroll System
Established payroll processing for temps.
Active payroll
Owner Credit
Owner credit reviewed. Strong clients and billings matter more for factoring.
Varies by product
Staffing agencies with strong client portfolios can access factoring regardless of owner credit because the financing is based on client payment.
Real Results
Apex Staffing Solutions
Light Industrial Staffing, Ohio
The Challenge
Apex won a contract to staff 75 temps at a new distribution center. The client required Net 45 terms. Apex needed to fund approximately $180,000 in payroll before first payment—capital they didn't have on hand.
The Solution
We established a $250,000 factoring facility. Apex bills weekly, factors immediately, and funds Friday payroll. Line scales with placements.
The Result
Distribution center fully staffed in 3 weeks. Contract generating $320,000/month in billings. Factoring facility expanded to $500,000 as business grew. Never missed payroll despite Net 45 terms.
“The contract would have been impossible without factoring. Net 45 on 75 temps is $180K we needed to front. Now I take contracts based on opportunity, not whether I can fund the payroll gap.”
Staffing Industry Snapshot
Key metrics shaping staffing agency financing decisions.
Why Staffing Agencies Choose Us
What sets staffing-focused financing apart.
Payroll Timing Solution
Convert client invoices to payroll cash. Bill Monday, fund Friday.
Client Credit Based
Your client's creditworthiness drives factoring. Strong clients enable funding.
Scales With Growth
More placements mean more invoices mean more funding. No ceiling on growth.
Staffing Expertise
We understand temp payroll, placement cycles, and staffing economics.
Same-Day Funding
Factor invoices and receive funds same day. Payroll never waits.
Growth Capital
Beyond factoring: term loans, working capital, and expansion financing.
Explore Your Options
Different financing products for different needs. Find the right solution for your business goals.
Invoice Financing
Convert staffing invoices to immediate payroll cash. Bill clients, get paid same day instead of waiting Net 30-60.
Working Capital Loans
General working capital for operations, recruiting, or growth initiatives beyond invoice timing.
Business Line of Credit
Pre-approved capital for variable needs. Draw for payroll, recruiting, or opportunities.
Business Term Loans
Structured capital for expansion, acquisition, or major growth initiatives.
Revenue-Based Financing
Payments tied to your billings. Busy periods pay more, slower periods adjust.
Bad Credit Options
Factoring based on client credit, not owner credit. Strong clients enable funding.