Business funding for staffing and recruiting agencies
Staffing agencies carry a structural mismatch: workers expect a paycheque every week, and client companies pay invoices in 30 to 60 days. Growth makes this worse, not better, because every new placement means more payroll due before that client's invoice is collected.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Meeting weekly payroll for placed workers ahead of client payment
- Funding growth after landing a large new client account
- Covering payroll taxes and workers' comp premiums
- Smoothing cash flow through a slow placement season
What usually fits
Products that usually fit
- Invoice factoring the standard tool for staffing; converts billed hours into cash before the client pays.
- Line of credit for payroll timing and taxes alongside factoring.
- Working capital for a short-term gap.
- Term loan for a planned expansion into a new market.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
An agency bills $90,000 for a week of placed workers on 45-day client terms. With factoring at an illustrative 92% advance, it receives about $82,800 within a day or two, enough to run payroll on time. At an illustrative 2% fee for the period outstanding, the fee is roughly $1,800, with the balance paid once the client settles.
Illustrative only: real advance rates and fees depend on client payment history and volume.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Weekly billed volume against weekly payroll obligations
- Which client companies you bill and how reliably they pay
- Payroll tax and workers' comp standing
- How long you have been placing workers with your current clients
- Owner credit and time in business
Honestly
Who this is not for
- A brand-new agency with no billed hours yet: factoring needs invoices to advance against
- Billing clients with a history of slow or disputed payment, without pricing that risk in
- Using short-term factoring fees to fund permanent, structural payroll shortfalls instead of fixing pricing
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Staffing agencies funding questions
Is factoring the same as a payroll loan?
No. You are selling the right to collect an invoice, not borrowing against future revenue generally. The cost depends on how long the client takes to pay.
Can a new staffing agency use factoring?
Once you have billed and delivered hours to a client, yes, in most cases. Lenders want to see the invoice and confirm the client is legitimate.
Does factoring cover payroll taxes and workers' comp too?
The advance gives you cash you can use for any business purpose, including payroll taxes and comp premiums, not just wages.
What happens if a client is slow to pay?
Fees are usually based on how long the invoice is outstanding, so a slow-paying client costs more. Recourse terms mean you may need to buy back an invoice that goes unpaid.
Guides
Guides for staffing agencies
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