Payroll is due Friday. Your clients pay in 45 days. We close that gap.

Factoring is the sale of your accounts receivable, not a loan. A funding partner purchases your staffing invoices at a discount: you receive most of the invoice value up front (advance rates on staffing invoices often exceed 90%), and the remainder — minus the factoring fee — when your client pays. There's no fixed monthly payment sized to a projection; funding tracks what you actually bill. Because it's a purchase of receivables, approval leans on your clients' payment strength as much as your own financials.

Facility size is typically tied to your eligible receivables — what you bill creditworthy business clients on invoice terms — rather than a fixed number. An agency billing $150,000 a month to solid commercial clients generally supports a larger facility than the same agency billing $40,000, and the facility can grow as billings grow. Our funding partners make all credit and pricing decisions, so the real answer comes from a review of your A/R aging and client mix.

Possibly, yes. Factoring partners weigh the credit of the companies that owe your invoices — the hospitals, distribution centers, and corporate clients you staff — more heavily than your personal score. A newer agency with verifiable placements at creditworthy clients may qualify where traditional bank credit isn't available yet. An advisor can give you a realistic read once they see your invoices and aging report.

With recourse factoring — the more common and usually lower-cost structure — your agency ultimately buys back an invoice the client never pays. Non-recourse shifts defined credit risk (typically the client's insolvency) to the factoring partner, generally at a higher fee and with tighter client-credit standards. Which structure a partner offers, and at what pricing, is the partner's decision — it's worth asking explicitly what "non-recourse" covers before signing, because it rarely covers disputes or short-pays.

Usually, yes. Most staffing factoring runs on notification: your client receives a notice of assignment and remits payment to the partner's lockbox. In the staffing industry this is routine — many of the largest staffing firms in the country finance receivables this way, and experienced accounts-payable departments process notices of assignment all the time. Some partners offer quieter structures for qualified agencies, but notification is the standard to expect.

To pre-qualify, just the short form — no documents at that stage. To set up a facility, staffing-focused partners typically ask for an accounts-receivable aging report, sample invoices with the timesheets behind them, a customer list, recent business bank statements, your formation documents, and a government-issued ID. Because staffing invoices are backed by approved timesheets, verification is usually straightforward — agencies with clean timesheet records tend to move fastest.