Factoring for Staffing Companies
Invoice factoring is a financing solution that can be useful for staffing companies. Staffing companies often have to pay their employees on a weekly or bi-weekly basis, but they may not receive payment from their clients for 30, 60, or even 90 days. This can create a cash flow gap that can be challenging for the staffing company to manage.
Staffing factoring allows staffing companies to sell their outstanding invoices to a factoring company in exchange for immediate cash. The factoring company will typically advance a percentage of the invoice amount (usually around 80-90%) upfront and then pay the remaining balance (minus their fees) once the client pays the invoice.
This can be a useful solution for staffing companies that need cash quickly to cover their operating expenses or to fund growth.
Staffing Factoring with SouthStar
SouthStar works with temp and permanent hire staffing agencies. When factoring with SouthStar, you will be assigned a personal account manager who will handle collections, payment processing, and customer credit approvals, allowing you to focus on your business. When providing funding for staffing agencies, we look at the credit history of your customer, not your company or personal credit history. Years in business is also not a factor in our decision to finance.
Once established with SouthStar, you will receive same-day funding on submitted invoices. This gives you access to unlimited working capital, right when you need it. Staffing factoring also allows you to extend longer payment terms to clients and grow your business.
Get the funding you need today!
Benefits of SouthStar’s Staffing Factoring
- Easy and fast qualification
- Initial funding in 2-5 days
- Private lender
- Fast decision making
- Pre-check of customers
- Challenged credit is a non-issue
- Balance sheet issues are OK
- No equity required
- Collections services
“Business was good and our company was growing, but our slow paying clients had our cash flow tied up in invoices. Paying our staff on time was a constant struggle that resulted in us losing employees. SouthStar’s Payroll Funding has really turned our business around. Now I have the cash I need to pay employees on time and I’ve used the extra funds to take on more clients.”
– Andrew, Owner of a Distribution Company