Invoice Factoring for California Staffing Companies: Funding Weekly Payroll
Staffing companies have a built-in cash gap: workers are paid weekly, but clients often pay on 30-, 45-, or 60-day terms. Each new placement makes the gap bigger, so growth can strain cash flow even for profitable agencies.
How Staffing Factoring Works
- You bill the client for approved hours.
- The factor verifies the invoice and advances most of its value.
- You run payroll from the advance.
- The client pays the factor, and you receive the balance minus fees.
What Factors Review
- Client credit and payment history
- Approved timesheets and how hours are confirmed
- Payroll tax compliance. Unpaid payroll taxes can create priority claims, so expect proof that deposits are current
- Workers' compensation coverage
- Client concentration
Light Industrial, Healthcare and Professional Staffing
Programs differ by staffing type. Healthcare staffing billed to facilities, light industrial, and professional or IT staffing each have their own verification and concentration rules. See our professional services financing page and healthcare financing page.
Comparing Programs
- Can funding be timed to your payroll day?
- Are new clients approved quickly?
- Is it spot or whole-ledger?
- What is the total cost on a normal payroll month?
Read how to read a factoring agreement before signing.
Typical Starting Point
Factoring programs we work with require $150,000+ in annual business revenue, with invoices to commercial or government customers. Up to $30 million per month is available, subject to underwriting and eligible invoices. There is no FICO minimum, because the review centers on your customers' ability to pay. A review usually starts with four items: an accounts receivable aging report, a customer list, recent invoices, and a basic company profile. Once set up, funding on approved invoices often arrives in about two business days.
Request a review or start on our invoice factoring page.
Related reading: Invoice Factoring in California · Freight Factoring for Truckers · Construction Invoice Factoring · Invoice Factoring in Fresno
General information, not a quote or offer. Advance rates, fees, and terms are set by each capital provider and depend on your customers, invoices, and business. Every arrangement is subject to underwriting and approval.