6 Types of Staffing Companies Use Factoring for Payroll Financing

Invoice factoring is a fast, easy solution for payroll financing for temp staffing companies of all kinds. It allows you to leverage unpaid accounts receivable invoices as a payroll funding tool without taking on debt or incurring a hit to your company’s credit rating or reputation.

Payroll financing for temp staffing companies of all types

Invoice factoring (aka receivables financing or payroll financing) is a centuries-old business finance tool. It’s commonly used by temp staffing, recruitment, and other types of staffing businesses because it better aligns revenue with expenses.

For example, most staffing and recruiting agencies have to outlay a considerable amount of money for advertising, interviewing, testing, screening, and onboarding candidates before they can be placed with a client and an invoice (finally) gets generated. Once generated, the temp staffing company is likely to wait 30-60 days more for the client to pay.

Meanwhile, the staffing company is needing to pay temporary workers and may find that it needs to access the money tied up in client receivables. Instead of hounding clients to pay early, payroll financing for temp staffing can be gained through payroll invoice factoring. The client is happy, the temporary workers are happy, and you are free to remain focused on growing your staffing business.

What types of staffing companies can use factoring for payroll financing?

Here are six types of temp staffing businesses that can access this form of payroll financing:

Business and administrative temp staffing and recruitment: These are agencies that primarily fill openings for office workers. This could be for temporary placement or temp-to-hire scenarios. In addition, recruiters can use invoice factoring for payroll or other business expenses. Once a candidate has been placed (often a director or above level with a percentage of the first-year annual salary as commission) the earnings statement or invoice can be factored.

Industrial, manufacturing, warehouse, & distribution: Supply chain factoring is the earliest form of factoring, so it’s no surprise that it’s still a valid form of supply chain financing for manufacturers, warehouses, distributors, and other industrial temp staffing agencies.

Teacher staffing: If the past few years have shown anything, it’s that temp staffing for teachers, administrative workers, school nurses, and other positions is in high demand. Teacher staffing companies can get payroll financing through invoice factoring or use factoring as the means to cut costs or grow faster.

Security guard companies: Security guard companies may fall in the realm of temp staffing but could also simply be an outsourced service for a business. In either case, security guard invoice factoring allows you to unlock working capital to finance payroll, meet other business expenses, or grow your security guard staffing business faster.

IT consultants and staffing agencies: Another field in exceptionally high demand, IT consultants and IT staffing businesses can leverage unpaid client receivables to meet payroll, negotiate supplier discounts, take on more business faster, and so on. Like security guard staffing firms, these agencies often act as outsourced tech departments for a client on an ongoing basis or may be fulfilling temp staffing needs for new software installation, repair, and more.

Nurse staffing: Nurse staffing and other medical staffing agencies (e.g., hospice, home health care, dental office, etc.) are also in demand, with shortages perhaps higher than in any other industry. This is an ideal time to grow your nurse staffing agency, which could mean spending a significant amount of capital to attract nurses, certified nursing assistants (CNAs), home health care workers, dental assistants, hygienists, and more. In turn, this could make nurse staffing invoice factoring ideal as a solution for payroll financing for temp staffing needs.

Best factoring companies for staffing payroll financing

The team at My Factoring Brokers is made up of individuals who worked at a successful factoring company, so much so that the company was attractive to, and acquired by a competitor. Don’t let our expertise go to waste! We work with the best factoring companies for staffing payroll financing and staffing factoring.

The best factoring companies for recruiting, staffing, and temp employment agencies offer:

• High staffing factoring advances – as high as 96-98%
• Low factoring fees – as low as 2%
• Fast, same-day staffing agency funding on advances
• High level of customer service to win your business for the long term
• No requirement to sign a long-term contract
• No factoring minimums – factor only when it’s right for your business
• High approval rates
• Fast underwriting processes to get your staffing agency funded faster

Get a 100% free, no-obligation quote for temp staffing factoring

Simply complete the form below and a top staffing factoring company will reach out with a free, no-risk, no-obligation quote. Or speed up the process and complete our online staffing factoring application – you could go from application to your first funding in 2-3 business days.