Staffing factoring is the lifeblood of the staffing industry. When you place temporary workers, you pay them weekly - but your clients pay you in 30, 45, or 60 days. Without factoring, growing a staffing agency is nearly impossible.
The Staffing Agency Cash Flow Challenge
Running a staffing agency creates a structural cash flow problem:
- Workers expect weekly paychecks without exception
- Payroll taxes are due regardless of when clients pay
- Clients pay on Net 30 to Net 60 terms
- Every new placement increases your cash gap before it improves
- Workers' comp and insurance premiums are ongoing
- Growth actually worsens cash flow (more placements = more payroll before payment)
How Staffing Factoring Works
- 1You place workers at client sites and track their hours
- 2You submit timesheets and bill your clients
- 3You submit those invoices to your factoring company
- 4You receive 85-95% of the invoice value within 24 hours
- 5You make payroll and cover taxes
- 6When clients pay, you receive the balance minus factoring fees (2-5%)
Never miss payroll again
Check your eligibility for staffing factoring.
Staffing Factoring Rates
Staffing agency factoring rates typically range from 2-5% of the invoice value. Your exact rate depends on:
- Monthly factoring volume (higher volume = better rates)
- Client creditworthiness (Fortune 500 clients = lower rates)
- Average payment terms (shorter terms = lower rates)
- Contract type (long-term agreements often have better rates)
Types of Staffing We Work With
- Light industrial and warehouse staffing
- Clerical and administrative staffing
- Healthcare staffing (nurses, CNAs, allied health)
- IT staffing and technical contractors
- Security staffing
- Hospitality and event staffing
Benefits of Staffing Factoring
- Meet weekly payroll without fail
- Cover payroll taxes and workers' comp when due
- Say yes to new client opportunities
- Grow your agency without loans or equity dilution
- Focus on recruiting and sales, not collections
Back-Office Services
Many staffing factoring companies offer back-office services including payroll processing, tax filing, and invoicing. This can be particularly valuable for newer agencies that want to focus on growth rather than administration.
Get Started
Factoring Express has helped hundreds of staffing agencies manage cash flow and grow their businesses. With same-day funding, competitive rates, and dedicated account management, we're the partner your agency needs. Call 855-767-7771 or check your eligibility online.