Working Capital for Staffing Agencies
Bridge the gap between paying your temps weekly and collecting from clients monthly. Working capital designed for the unique cash flow demands of staffing companies.
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Staffing Agency Cash Flow Reality
Staffing agencies face a fundamental cash flow mismatch: payroll every week, client payments every 30-60 days. This gap compounds as you grow, requiring working capital solutions.
Payment Timing Gap
Staffing agencies pay workers weekly but collect from clients Net 30-60. A 100-person placement creates $40,000-$80,000 weekly float.
Growth Capital Constraint
Every new placement increases payroll before revenue arrives. Growth is constrained by working capital, not opportunity.
New Contract Startup
Landing a major staffing contract requires 4-8 weeks of payroll funding before first client payment.
Margin Compression
Staffing margins of 15-25% mean cash flow timing matters more. Carrying costs eat into thin margins.
Staffing Agency Cash Flow Challenges
The weekly-pay, monthly-collect gap is the core staffing challenge.
Payroll Every Week
Temps and contractors expect weekly pay. Clients pay Net 30-60. The gap is significant and constant.
New Client Startup
Landing a big staffing contract requires funding for weeks before client payments begin.
Rapid Growth
More placements mean more payroll before revenue catches up. Growth strains cash flow.
Seasonal Scaling
Seasonal clients need rapid scaling up. Payroll increases before billing catches up.
Client Payment Delays
Clients paying slow or disputing invoices creates immediate payroll pressure.
Recruiter Investment
Hiring more recruiters to grow requires investment before they generate revenue.
Staffing Agency Working Capital Process
Fast, simple process designed for staffing company cash flow needs.
Quick Application
Simple application with your billing history and payroll information.
15 minutes
Staffing Review
We evaluate your billing history, client roster, and payroll patterns.
Hours
Fast Approval
Receive your funding offer based on your staffing company performance.
Same day
Quick Funding
Accept and receive funds deposited to your account for immediate use.
24-48 hours
Capital That Grows With Your Placements
Working capital designed for staffing agencies' unique cash flow timing where payroll goes out weekly but clients pay monthly. Fund payroll, growth, and operations.
Cover Payroll
Never miss payroll for your temps and contractors. Maintain worker trust.
New Contract Startup
Fund the startup costs when landing new staffing contracts.
Scale Placements
Grow your placement count without cash flow constraints limiting growth.
Recruiter Investments
Hire more recruiters to increase your capacity and grow revenue.
Fast Funding
Get approved and funded in 24-48 hours for urgent payroll needs.
Staffing Expertise
We understand the unique cash flow patterns of staffing companies.
Staffing Agency Working Capital Uses
How staffing agencies use working capital funding.
Weekly Payroll Float
Bridge the gap between weekly payroll and monthly client payments.
Typical funding: $50K-$500K
New Contract Startup
Fund payroll for 4-8 weeks until first client payment arrives.
Typical funding: $75K-$400K
Seasonal Scaling
Ramp up for seasonal clients with increased placement needs.
Typical funding: $100K-$750K
Recruiter Hiring
Hire additional recruiters to expand capacity and growth.
Typical funding: $50K-$200K
Technology Investment
ATS, CRM, and staffing software investments.
Typical funding: $25K-$100K
Office Expansion
Open new locations to expand geographic coverage.
Typical funding: $75K-$300K
Working Capital vs. Invoice Financing
Compare working capital to invoice financing for staffing.
| Feature | Working Capital | Invoice Financing | Bank Line of Credit |
|---|---|---|---|
| Funding Basis | Business performance | Specific invoices | Credit profile |
| Funding Amount | $50K-$2M | 80-90% of invoices | $50K-$500K |
| Use Flexibility | Any business use | Working capital | Any business use |
| Approval Speed | 24-48 hours | 24-48 hours | 2-4 weeks |
| Ongoing Management | Simple payments | Invoice submission | Draw management |
| Client Notification | None | Sometimes | None |
| Best For | General needs | Invoice timing | Strong credit |
| Cost Structure | Fixed payments | Per invoice fee | Interest on draws |
Staffing Agency Working Capital Requirements
Requirements for staffing agency working capital loans.
Operating Staffing Agency
Active staffing, temp, or recruitment agency with client billings.
6+ months in operation
Monthly Billings
Demonstrated monthly billings from staffing placements.
$50,000+ monthly billings
Bank Statements
Business bank statements showing billing deposits and payroll.
3-6 months statements
Payroll History
Evidence of regular payroll processing for temps and contractors.
Consistent payroll
Owner Credit
Personal credit considered but billing history is primary factor.
550+ credit score
Client Diversity
Billings spread across multiple clients rather than single client dependency.
No single client >50%
All staffing verticals qualify including light industrial, clerical, healthcare, IT, and executive placement.
Real Results
Premier Staffing Solutions
Light Industrial Staffing, Ohio
The Challenge
The agency landed a major manufacturing client needing 85 temps. Weekly payroll of $68,000 started immediately but client paid Net 45. Needed $300,000+ to fund the first 6 weeks before any client payment.
The Solution
Working capital loan for $325,000 with 24-month term. Funded in 36 hours, just in time for first payroll run.
The Result
Successfully staffed the contract without payroll issues. Client became $3.2M annual account. Working capital provided the bridge to profitability. Paid down loan aggressively and established line of credit for future growth.
“Without that working capital, we would have had to turn down our biggest opportunity. The math was simple: $325K loan cost versus $3.2M annual client. Now that client is 35% of our business.”
Staffing Agency Working Capital Data
Statistics on working capital for staffing companies.
Working Capital Benefits for Staffing
Advantages of working capital for staffing agency operations.
Payroll Security
Never worry about making payroll for your temps and contractors.
Growth Enablement
Take on larger contracts without cash flow constraining growth.
Client Flexibility
Accept clients with longer payment terms without stress.
Recruiter Investment
Hire recruiters to grow capacity and revenue.
Fast Access
24-48 hour funding when payroll needs are urgent.
Staffing Understanding
Lenders who understand the unique cash flow of staffing.