Best Invoice Factoring for Staffing Companies

Get paid now or get paid later. You choose.

Market knowledge and industry expertise have taken staffing / temporary (temp) agencies, once called employment or recruitment firms, into the era of new media. 

But as staffing companies don’t receive payment for their services until job vacancies are filled and applicants are working, they often experience cash flow problems from the slow-payment of receivables

Small business Invoice factoring with FundThrough is an effective and often the best option to maintain constant cash flow and working capital, finance payroll, pay the rent, buy supplies, and keep the doors open while waiting for payment on your invoices.

What is Invoice Factoring for Staffing Companies?

Slow-paying clients can stifle cash flow and working capital, as well as any plans to scale your business in the future. High-interest bank loans only add to your total debt, and qualifying can be difficult if you’re a relatively new start-up or have limited credit history. 

Invoice factoring gives you fast access to cash. It is a type of short-term financing with flexible terms and eligibility requirements. Factoring doesn’t require collateral, and most staffing companies qualify. FundThrough considers your client’s credit rather than your own.

Benefits of Invoice Factoring for Staffing Companies

Staffing companies have different challenges than many other industries. You are responsible for paying contract-based workers on behalf of your clients. If you can’t pay, workers don’t work, and your clients look elsewhere for temps.  

Factoring is one of the most common types of funding for the staffing/temp industry. In addition to the costs of recruitment, sourcing, and hiring, factoring can help solve payroll issues. With consistent funding, you can confidently bid on larger projects. 

Factoring has many other benefits, including:

  1. Your agency chooses which invoices to factor with FundThrough.
  2. Funding grows along with your staffing agency.
  3. It is not a loan, so you incur no new debt or pay high interest.
  4. The approval process is pain-free, and most staffing agencies are eligible. 
  5. Your credit score and credit history don’t matter.
  6. Your business is provided with fast cash.
  7. No collateral is necessary, and you keep the equity in your business.

Types of Invoice Factoring for Staffing Companies

Many types of staffing companies can benefit from invoice factoring.

  • Healthcare and medical staffing agencies
  • Human resources staffing companies
  • Consulting staffing firms
  • Administration staffing companies
  • Manufacturing staffing companies
  • Accounting staffing agencies
  • IT staffing companies
  • Warehouse staffing
  • Headhunters
  • Payroll companies
  • Finance staffing firms
  • Industrial staffing
  • Janitorial
  • Office and Clerical
  • Professional staffing companies
  • The Government

How Staff Invoice Factoring Works

It’s not uncommon that a staffing agency waits four weeks (or more) after placing workers to get paid by the client, even though they cover all of the costs up to that point. That’s why invoice factoring makes sense for so many staffing companies.

The process of factoring invoices for staffing agencies is simple compared to many other funding options. 

  • Companies fill job vacancies and submit invoices to clients.
  • Staffing companies submit approved unpaid invoices to FundThrough.
  • FundThrough purchases staffing agency invoices and advances rates up to 80% of the expected net collectible value. 
  • FundThrough waits for receivables to be paid by your clients. 
  • FundThrough pays you up to the remaining 20%, minus a fee (based on invoice terms).
  • Repeat as necessary.

The amount advanced varies based on the amount of the claims and the size of the staffing agency.


Staffing Invoice Factoring Costs

Your invoice factoring costs typically reflect the amount of your receivables, the due date, your company, and the customer paying the invoice. FundThrough is very competitive. There are no hidden fees and no charge to open an account. Your staffing agency can choose which invoices to factor for a small monthly fee. Sometimes FundThrough can accommodate customized pricing solutions for very large invoices.

Staffing Invoice Factoring Terms

Terms vary, as do many of the requirements of each factoring company. When you and FundThrough move ahead in the factoring process, you’ll enter into an agreement, which typically covers all upfront costs and fees. FundThrough strives to make factoring as transparent and streamlined as possible.

Staffing Invoice Factoring Qualifications

You must operate a staffing/temp company. Factoring is provided to businesses only.

Your business must have clients. Since companies sell their accounts receivables/ invoices to a factoring company, you must be a service provider or produce goods and submit invoices for payment.

Your clients must be creditworthy. Factoring is not based on your credit but instead on your client’s invoices.

Your invoices must be free of tax liens or legal judgments. 

You must not have an open bankruptcy. 

What Should Staffing Companies Look For in a Factoring Company?

Trust and Reputation

Over the years, FundThrough has gained the trust and confidence of its customers through transparency and integrity. In fact, FundThrough has the highest customer satisfaction rate in the industry. Not an easy task when you consider the many funding options available to small- and medium-sized businesses. 

FundThrough also has a diverse work environment that helps understand their clients’ challenges and identify the solutions that best fit their needs. 

FundThrough has a 95% satisfaction rating and can cut the average wait for payment by 97%! 

Quick and Easy Setup

Set-up is free, fast, and easy. You can be on your way to factoring your outstanding invoices before you know it.

  1. Create a free account with FundThrough. 
  2. Provide a few documents to confirm your business information.
  3. Upload the invoices you want to fund or save time by connecting to QuickBooks, and FundThrough will bring them in automatically.
  4. Get approved for one of FundThrough’s two solutions, depending on your funding needs.
  5. Get paid the invoice amount, less FundThrough’s affordable 2.5% monthly fee.
  6. Get back to business. 

Experience with Staffing Companies and Agencies

FundThrough understands that Staffing Agencies can’t always wait weeks or months for payment from their clients. To grow and take on larger clients depends on positive cash flow and working capital. 

Launched in 2014, FundThrough funds tens of millions of dollars in invoices every month. FundThrough continuously develops new products to serve under-banked small businesses across the U.S. and Canada. FundThrough has worked with staffing agencies, like Ace Recruitment, to help them accelerate their cash flow, pay business expenses, and take on larger clients.

Competitive Rates and Flexible Terms

FundThrough tailors its online invoice factoring solutions to meet your company’s size and needs. Our invoice funding solution is best for businesses factoring invoices from $15,000 to $10-million. Get paid the amount of your invoices, minus a small monthly fee.

Fees are based on the terms of your invoices.

1-30 days = 2.5%  

31-45 days = 3.75%

46-60 days = 5% 

61 days and up = 7.5%

When Ace Recruitment’s Account Manager, Sami Boubertakh, came to Ace Recruitment, they had just landed a client who was supposed to pay every 45 days. But Ace Recruitment was incurring billings in the range of tens of thousands a week. So they asked themselves, “How are we going to maintain that for six weeks when we don’t have that type of capital? The answer, FundThrough.

ace recruitment logo

Qualifications for Factoring for Staffing Companies

Qualifications for factoring for staffing companies vary from one factor to the next. But getting the best advance rates and terms depends not only on how creditworthy your clients are and the volume of your invoices, but also the factor’s experience in your industry. 

Even so, your staffing company’s complex structure makes the option of working with a factoring company the perfect choice. FundThrough uses information from your business banking account and accounting software to assess your cash flow and provide you with a suitable funding limit. Invoices must be less than 90 days old and eligible to fund.  

Should you choose Invoice Factoring or a Bank Line of Credit?

If your staffing agency struggles with cash flow, you might consider a bank line of credit or choose to factor your invoices. Both have advantages and disadvantages to examine before making a decision.

Line Of Credit


  • A line of credit (LOC) provides you with the cash flow you need when waiting for payment on invoices.
  • Like a credit card, a LOC gives you the flexibility to borrow what you need when you need it.
  • LOCs allow you to build credit.
  • You pay interest on only the money you borrow.


  • You pay interest on the money you borrow.
  • Fees and extra charges can add up, especially if you fail to make payments.
  • You are personally responsible for any LOC debt if your business fails.
  • It can be challenging to qualify for a LOC without a strong credit history. 

Invoice Factoring


  • Factoring with FundThrough provides you with immediate funding.
  • You get an advance on money you’ve already earned.
  • Invoice factoring with FundThrough promotes growth and helps resolve gaps in cash flow without taking on new debt. 
  • You won’t give up ownership or control of your business. No collateral is needed.
  • A poor credit score doesn’t matter. 
  • Set-up with FundThrough is easy and fast. Plus, you can connect with QuickBooks automatically. 
  • FundThrough gives you unlimited working capital based on the size of your outstanding customer invoices.


  • You hand over control of your invoices to FundThrough to collect on unpaid invoices. 
  • Typical rates for factoring with FundThrough are between 2.5% and 6%. 

Staffing Invoice Factoring FAQs

Your questions answered.

Whether your agency specializes in temp work or professional recruiting, you might wait weeks or months to get paid for your services. That’s a long time to wait for the funds you need when trying to run your agency. Staffing firms can use money from factoring to meet payroll, pay operating and overhead expenses, buy supplies, and keep the lights on. 

Invoice factoring leverages a factoring company’s expertise that advances you a percentage of your total outstanding invoices upfront and then collects the full amount from the gov. agency on your behalf.

The importance of payroll factoring to finance payroll cannot be taken lightly. It gives you the flexibility to factor only the invoices you choose.  You have unlimited funding potential, your employees are paid on time, which builds loyalty, and you get the support you need to grow. Payroll factoring also helps you manage cash flow and working capital, so you can get back to work.

Both invoice factoring and bill discounting provide working capital to businesses from accounts receivables / unpaid invoices. But they are different in other ways.

Invoice factoring: When a company sells their accounts receivable or unpaid invoices to a third party, called a factor, it is called invoice factoring. You are paid for work already done. You can acquire quick cash without waiting for invoices to be paid from slow-paying customers. 

Bill discounting: Also called invoice discounting, bill discounting generates working capital from future payables. Essentially, it is the advance selling of an invoice (or bill) to a discount business or financial institution before the bill is due. 


Simple. Intuitive. Staffing Invoice Factoring.

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