Line of Credit for Staffing Agencies
Have capital ready when you need it. Draw for payroll gaps, new contract startups, or growth initiatives. Only pay interest on funds you actually use and credit replenishes as you pay down.
How much funding do you need?
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Why Lines of Credit Work for Staffing Agencies
Staffing agencies face continuous variable capital needs from weekly payroll timing, new contract startups, and growth opportunities. A line of credit provides on-demand capital for these fluctuating needs.
Payroll Timing Gap
Weekly payroll meets monthly client payments. A $50K weekly payroll creates a $100K-$200K ongoing timing gap.
New Contract Startup
Landing a major contract requires 4-8 weeks of payroll funding before first client payment arrives.
Variable Needs
Staffing capital needs vary week to week based on placement volume and client payment timing.
Growth Flexibility
Client requests additional temps. Having credit ready means you can scale immediately without cash constraints.
Why Staffing Agencies Need Flexible Credit
Variable needs require on-demand capital availability.
Payroll Timing
Temps paid weekly. Clients pay monthly. The timing gap creates constant stress and cash pressure.
New Contract Startup
Big new contract arrives. You need to fund weeks of payroll before first client invoice pays.
Growth Opportunities
Client wants more temps immediately. Can you fund the additional payroll fast enough?
Seasonal Scaling
Holiday warehouse season or summer construction requires rapid scaling up.
Slow-Paying Clients
Client pays late. Payroll cannot wait. Need immediate access to bridge the gap.
Recruiter Investment
Great recruiter available. Need capital for salary and ramp period.
Staffing Agency Line of Credit Process
Get approved once, draw funds whenever needs arise.
Application
Complete application with agency information, billing data, and bank statements.
15 minutes
Credit Approval
We review your agency and establish your credit limit based on billings and history.
1-5 days
Line Established
Your credit line is established and ready for draws whenever you need capital.
Same day
Draw As Needed
Request draws anytime. Funds typically available same-day or next business day.
Same day draws
Your On-Demand Staffing Capital
A line of credit gives your staffing agency access to capital whenever payroll or growth needs arise. Draw what you need, when you need it. Pay interest only on outstanding balances.
Bridge Payroll Gaps
Cover weekly payroll while waiting on monthly client payments.
Pay Only For Use
Have a $500K line but only need $100K? You only pay interest on $100K.
New Contract Funding
Fund the startup of new staffing contracts immediately without delay.
Scale Placements
Draw additional capital as your placement count grows with client demand.
Recruiting Investment
Fund recruiter hiring when opportunities arise without waiting.
Revolving Access
Pay down as clients pay you, use again. Ongoing availability for needs.
Staffing Agency Line of Credit Uses
How staffing agencies use lines of credit for operational flexibility.
Weekly Payroll Float
Bridge the gap between weekly payroll and monthly client payments.
Typical funding: $25K-$150K draws
New Contract Startup
Fund payroll for 4-8 weeks until first client payment arrives.
Typical funding: $50K-$300K draws
Seasonal Scaling
Ramp up for seasonal peaks with immediate capital access.
Typical funding: $75K-$400K draws
Late Payment Bridge
Cover payroll when client payments arrive late.
Typical funding: $25K-$100K draws
Recruiter Hiring
Fund recruiter salaries during their ramp-up period.
Typical funding: $20K-$75K draws
Technology Investment
Fund ATS upgrades and technology improvements.
Typical funding: $15K-$60K draws
Line of Credit vs. Other Staffing Funding
Compare lines of credit to alternative funding options.
| Feature | Line of Credit | Working Capital Loan | Invoice Financing |
|---|---|---|---|
| Access Structure | Draw as needed | Lump sum | Per invoice |
| Interest Charges | Only on draws | Full amount | Per invoice fee |
| Credit Renewal | Revolving | Reapply | Ongoing |
| Typical Limit | $50K-$1M | $50K-$2M | Based on AR |
| Interest Rate | 10-25% | 12-25% | 2-5% per invoice |
| Draw Speed | Same day | N/A | 24-48 hours |
| Best For | Variable needs | Known amounts | Invoice timing |
| Ongoing Management | Simple | Simple | Invoice submission |
Staffing Agency Line of Credit Requirements
Basic requirements for staffing agency business lines of credit.
Established Agency
Operating staffing agency with demonstrated billing history.
1+ year in operation
Monthly Billings
Consistent monthly billings from staffing placements.
$100,000+ monthly
Bank Statements
Business bank statements showing billing and cash flow patterns.
6-12 months statements
Owner Credit
Personal credit of agency owners. Lines typically require better credit.
650+ credit score
Financial Health
Agency should show stable operations and reasonable profitability.
Positive cash flow
Client Diversity
Billings spread across multiple clients rather than single client dependency.
No single client >40%
Lines of credit typically have stricter requirements than term loans or MCAs due to the revolving, long-term nature of the facility.
Real Results
Alliance Staffing Group
Light Industrial Staffing, Ohio
The Challenge
The agency faced variable capital needs from weekly payroll, new client ramps, and seasonal peaks. Taking separate loans for each need was inefficient and expensive. Invoice financing added complexity.
The Solution
Business line of credit for $425,000 at 14% APR on drawn amounts. No annual fee. Draws available same-day.
The Result
Over 18 months, the agency used the line 47 times for needs ranging from $35,000 payroll bridge to $180,000 new client startup. Average utilization was 42% of line. Only paid interest on actual draws. Grew billings from $1.8M to $2.7M annual.
“The line of credit changed our business. Before, every new client was a cash flow crisis. Now I draw what I need for payroll, pay down when clients pay, and never stress about timing. We grew 50% because we could say yes to opportunities.”
Staffing Agency Line of Credit Data
Statistics on business lines of credit for staffing agencies.
Line of Credit Benefits for Staffing
Advantages of establishing a business line of credit.
Payroll Confidence
Never worry about making weekly payroll regardless of client timing.
Cost Efficiency
Pay interest only on drawn amounts. Unused credit costs nothing.
Growth Enablement
Take on new clients knowing you can fund the payroll ramp.
Client Flexibility
Accept clients with longer payment terms without stress.
Seasonal Readiness
Scale up for seasonal peaks with immediate capital access.
Operational Simplicity
One facility for variable needs instead of multiple separate loans.