Payroll funding and invoice factoring for staffing companies

Updated · LoanHelp editorial team · Editorial policy · Not financial advice

Staffing agencies pay temps weekly while clients pay on net-30 or net-60 terms. Payroll funding usually means advancing against unpaid invoices — not a standalone payroll loan. Factors and lenders decide eligibility after reviewing your inquiry.

Illustrative example

Illustrative example — not a quote.

With $22,000 weekly payroll and 45-day client terms, you may need roughly $154,000 to cover about 7 payroll cycles before client cash arrives. Model your own numbers in the cash-gap calculator.

Common questions

Is payroll funding the same as a payroll loan?
In staffing, “payroll funding” usually means advancing against unpaid customer invoices so you can run weekly payroll — not a standalone payroll loan product. The funder looks at your clients’ credit and invoice terms.
What do staffing factors review?
Customer concentration, contract terms, timesheet and billing workflow, payroll tax compliance, and whether invoices are assignable. Bring aging reports and sample client contracts to your inquiry.
When is a line of credit better than factoring for staffing?
When you have strong financials, diversified clients, and can qualify for a revolving line without selling receivables each week. Factoring fits when net-30 or net-60 clients force you to pay temps before cash arrives.
Does LoanHelp run payroll or approve staffing funding?
No. LoanHelp is a referral service. Your partner sets advance rates, fees, and eligibility.

Recourse vs non-recourse factoring

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