Which funding products does this apply to?

Invoice Financing, Payroll Financing. Each has its own page listing the funders in this directory that offer it and what each one publishes about its terms.

Is this specific to staffing?

It is written around how a staffing business actually generates and collects cash, which is what makes its funding problem different. The mechanics transfer; the arithmetic may not.

The Find Me Funders research desk. Some drafting is AI-assisted, and every page that is says so at the top, including whether a person has checked its claims yet.

How do I know a figure here is right?

Where a page carries the green notice, its claims were checked against the sources listed at the end and a reviewer is named. Where it carries the amber one, nobody has verified it yet and you should confirm anything you plan to act on.

Are the examples real deals?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What any particular lender charges is on that lender's page, where it publishes it.

Why do you never say what a typical rate is?

Because we cannot source it. A market average assembled from lenders who do not publish prices is a guess with a decimal point on it. Where a lender publishes a figure, we show that figure and say where it came from.

Is this financial or legal advice?

No. It is general information about how these products work. Outcomes depend on your contract and your state, and a lawyer or accountant licensed where you are is the person to ask about your situation.

Can I reuse this content?

Quote a paragraph with a link back. Do not republish whole articles.

Can I get payroll funding for my staffing agency?

Usually yes, and the decision turns mostly on who your clients are rather than on how long you have been trading.

By Find Me Funders research desk Updated 14 September 2026 965 words 4 min read

Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.

Can I get payroll funding for my staffing agency?

Most staffing firms with creditworthy clients and documented, approved hours can get payroll funding, including young firms and firms with weak owner credit. The underwriting looks at your clients' ability to pay, the quality of your timesheet and approval documentation, your bill-to-pay spread, whether employment taxes are current, and whether an existing lien already covers your receivables. A first UCC position and clean tax filings matter more than your time in business.

The product is built for exactly this problem, so availability is usually not the obstacle. The conditions are.

What actually gets underwritten

Your clients' credit, not just yours.The funder is being repaid by the companies you place people with. A young agency placing staff with large, financially sound clients is a better file than an established agency whose clients are all thinly capitalised.

Documentation of the hours.Approved timesheets, a purchase order or signed service agreement, and a bill rate that matches the contract. Disputed or unapproved hours are unfundable, because the receivable they create is contestable.

Your spread.The gap between bill rate and pay rate has to cover wages, employer taxes, workers' compensation, the funding cost and something for you. A thin spread is fundable but leaves nothing after the fee, and funders know it.

Employment tax status.This is the most common decline reason that has nothing to do with sales. Behind on 941 deposits and you are competing with a tax authority that can file a lien ahead of the funder's collateral. Expect to show recent filings and deposit proof. Unpaid trust fund taxes can also reach responsible individuals personally under 26 U.S.C. section 6672.

Existing liens.A UCC-1 filed by a previous lender or by a merchant cash advance funder covers the same receivables. It has to be released, subordinated or paid off first. Check what is on file before you apply.

Client concentration.One client at most of your revenue is a risk the funder will price, cap or carve out. It is not automatically fatal.

The spread, in numbers

Illustrative only —you bill $38 an hour and pay $26. Employer taxes, workers' compensation and other burden add about 12%, so your loaded cost is $29.12. The gross spread is $8.88 an hour, or 23.4% of the bill rate.

Place 40 people at 40 hours and you invoice $60,800 a week against $46,592 of payroll cost. Weekly gross margin: $14,208.

Factoring at 2.5% of invoice face costs $1,520 that week — 95 cents an hour — leaving $12,688 before your own overhead. That is the trade, and on a 23.4% spread it is affordable. On a 12% spread, the same fee takes a much larger share of what is left, which is why funders read your bill-to-pay gap as carefully as they read your client list.

Why the timing matters more than the cost

The reason the product exists is not the fee, it is the gap.

Continuing the same example: you pay wages every Friday and your clients pay around day 45. Before a single client payment arrives you have funded roughly 6.4 weeks of payroll — about $299,500 of cash out the door. That is the working capital requirement of a 40-person book, and it grows every time you win an account.

Factoring collapses it. Invoice on Friday, receive an 85% advance of $51,680 the same week, and next Friday's payroll is covered by the invoice you just raised rather than by capital you do not have. The reserve, less fees, releases when the client pays.

That is also why growth is the dangerous phase. Doubling the book doubles the gap before it doubles the margin, and an agency that funds growth out of retained cash runs out of cash at exactly the moment it looks most successful.

What matters less than you would expect

Time in business, personal credit score, profitability and the size of your balance sheet all carry less weight here than in bank lending. What replaces them is the quality of the receivable and the discipline of your documentation.

What you will be asked for

An accounts receivable aging report, a client list with terms, sample timesheets and invoices, your service agreements, recent bank statements, payroll tax filings, an entity search, and a personal guarantee — usually a validity guarantee confirming the invoices are real and undisputed rather than a guarantee that clients will pay.

Before you sign anything

Check the funding cutoff times against your own pay calendar, the advance percentage and when the remainder is released, what happens when a client pays late, how long you have before an unpaid invoice is charged back, and the notice period and fees to leave. In staffing, missing a pay date costs you the workforce, so operational terms deserve at least as much scrutiny as the rate.

Ask the funder, before you submit anything, what its cut-off time is for same-day funding and which day of the week it settles. On a Thursday cut-off with a Friday pay date, a Wednesday invoice approval is the whole difference between paying people and not.

The edge cases worth raising before you apply

A client who pays in 90 days.Longer terms are fundable, but check the recourse period against how that client actually pays rather than what the contract says. If the facility charges the invoice back at day 90 and your client settles at day 97, you are absorbing every one of those invoices.

A client who disputes hours after the fact.Approved timesheets are your protection. An arrangement where hours are approved verbally, or approved weeks later, produces receivables a funder will not advance against at full rate.

Two entities, one payroll.Agencies frequently run a separate entity for a particular client or state registration. The funder underwrites the entity that owns the receivable, and if payroll runs from the other one, that has to be documented rather than assumed.

An existing advance.A merchant cash advance taken last year almost certainly filed a blanket UCC covering accounts. That has to be paid off, released or subordinated before a factor will fund, and the payoff figure is the number that decides whether the deal works.

Can I get payroll funding for my staffing agency?