Staffing · Invoice factoring
Payroll funding and invoice factoring for staffing agencies
Temporary workers are paid weekly while clients pay on net-30 to net-60 terms. Staffing factoring advances cash against client invoices so payroll is covered before the invoice is collected.
What to know
What agencies should know about staffing factoring.
Client credit decides the funding.
Providers underwrite the companies you bill, so an agency with strong clients can often get funded earlier than it could with a bank.
Payroll taxes are part of the picture.
Some staffing-focused providers also help manage payroll tax payments and reporting. Confirm exactly what is handled and by whom.
Concentration limits.
If one client makes up most of your billings, providers may cap how much they will advance against that client.
Growth uses cash before it pays.
Adding placements raises payroll right away while the first invoice is weeks away, which is the gap factoring is built to cover.
FAQ
Common questions from staffing agencies.
Can a new staffing agency get payroll funding?
Often yes. Providers weigh the creditworthiness of your clients more heavily than your time in business, which can make funding available earlier than a bank loan.
What does staffing factoring cost?
Fees are commonly a percentage of the invoice, often tiered by how long the client takes to pay, and vary with volume and client credit. Ask for all fees in writing and compare total cost on a sample invoice.
Does the client know I use a factor?
Often yes, since clients are typically directed to pay the provider. Some programs offer non-notification arrangements with different pricing.
Is Truidian a lender or factoring company?
No. Truidian is a business solutions company. It helps businesses identify and connect with participating third-party providers, who make every approval, pricing and terms decision.
Tell us about your staffing business.
Share a few details and we'll identify participating providers whose programs may fit.
Truidian is a business solutions company, not a lender, factoring company or payment processor. Financing and services are offered by participating third-party providers and are subject to their approval and terms. Approval, funding, rates and terms are not guaranteed.