Financing Staffing Agencies
0.69% to 1.59%
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20+ Years in Business & Specialized in Staffing Financing
What Is Invoice Factoring For Staffing Agencies?
Invoice factoring for staffing agencies is a financial solution that helps staffing agencies improve their cash flow by providing immediate access to funds. Staffing agencies often face challenges due to the time gap between paying their employees and receiving payment from their clients. An invoice factoring company allows staffing agencies to sell their accounts receivable (unpaid invoices) to a factoring staffing company at a discounted rate.
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Is your Staffing Company growing faster than your operating capital?
Fast Approval Process
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3 to 5 Day Initial Setup
Free Invoicing Software
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Is your Staffing Company growing faster than your operating capital?
Fast Approval Process
3 to 5 Day Initial Setup
Free Invoicing Software
1st Commercial Credit can help you grow your staffing agency with unlimited payroll funding, whether you're a start up or a multi-million dollar operation. Meeting staffing payroll during growth can be a challenge. Financing staffing agencies is a very simple process for us.
Start Today and get initial funding in 3 to 5 working days. No financials needed, No up-front fees to set up, it is that easy.
We can accommodate receivable based credit lines to new temporary staffing companies with minimal funding needs. Another option is our our asset based lending solutions for large staffing agencies that can go up to $10 million if needed.
Flexible Approvals with our Staffing Factoring Company Service:
At 1st Commercial Credit, our accounts receivable financing service is a flexible source of funds for temporary staffing companies. We simply utilize your accounts receivable as the collateral and advance funds against the face value of your invoices. The receivable credit line grows proportionately with your sales cycle and we can fund as little as $10,000 a month and up to $10 million for larger staffing companies.
We fund staffing agencies every week for the first time, and they usually invoice once a week thereafter. Our clients require funding as soon as they invoice so they can replenish their payroll checking account by Wednesday of every week.
Do You Own A staffing Agency?
Discover essential insights and expert advice tailored for staffing agencies looking to optimize cash flow, manage payroll efficiently, and scale their business. Our in-depth articles cover industry challenges, financial solutions, and strategies to help your agency succeed. Stay informed and make smarter financial decisions with our expert resources.
What are the Benefits Of Funding For Staffing Companies?
Receivable financing offers a reliable and consistent source of working capital to alleviate cash flow issues. Your company will now be able to cover pressing costs, manage growth, and take on new contracts and opportunities.
1st Commercial Credit funds all temporary staffing agencies, regardless of industry, size, or time in business. We provide financial solutions for startup staffing companies and well-established staffing firms. We also have extensive experience providing medical staffing factoring for the healthcare industry.
Factoring is an ideal funding option for businesses just starting up or for those companies who have had difficulties obtaining a traditional form of financing. For bank loans, time in business and ideal credit history is a must to qualify. When companies don’t fulfill these requirements, they will be turned down by banks and need to find an alternative form to finance their business. The good news is that with 1st Commercial Credit, you only need to have outstanding invoices from creditworthy customers, and approval takes 3 to 5 days.
How To Receive Funding For Staffing Companies?
1st Commercial Credit delivers a quick and simple approval process for temp staffing with funding in 3-5 days. As a business, having to wait months to be paid for your temporary staffing services can hugely affect your ability to meet payroll and pay taxes on time.
In the staffing industry, the lack of cash flow usually prevents from expanding staffing agencies and hiring new temporary employees. This situation can halt the growth and ability to take on big contracts. 1st Commercial Credit specializes in providing lending options for staffing companies and has an efficient and fast application and funding process.
Staffing factoring is a practical financial alternative for short-term or long-term financing needs for staffing firms of all sizes and stages.
1st Commercial Credit is a company that factors receivables in the healthcare services industry. We understand the unique challenges faced by staffing firms in hospitals, medical clinics, nursing homes, and long-term care facilities.
We know that well-managed, profitable small and mid-sized staffing agencies will experience cash flow difficulties as they grow rapidly. This is why we strive to make the funding process for staffing agency loans easy and accessible. We will evaluate your company's needs and goals to choose a funding program that will fulfill all of your business needs. Once you've completed our short 2-page application form online and have been approved for a financing receivables program, we will pay you for the outstanding invoices within 24 hours.
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Common Cash Flow Issues That Staffing Agencies Face
Usually, fast growing staffing agencies use this type of financing to increase their cash flow for daily expenses. At 1st Commercial Credit, we finance staffing agencies with as little as $10,000 a month to $10 million for larger agencies. Most of our clients come to us with common cash flow problems:
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What Types Of Staffing Agencies Come To Us For Funding?
There is no need to borrow money if you have uncollected receivables from good credit worthy accounts. Here are the different types of staffing agencies services that come to us for funding:
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Invoice Factoring Vs Traditional Bank
A factoring relationship brings more than just immediate access to cash. There are many advantages for your staffing agency when using this form of financing.
Invoice factoring tends to be a better financial solution for staffing agencies when compared to a traditional bank. Business loans from a bank have strict requirements to apply. They are usually paired with a complicated and time-consuming process. Banks demand an almost perfect personal credit and also ask for business collateral. Even if a company manages to qualify for all these requirements, the final approval and access to cash can still take several weeks or even months.
In summary, here are the main 5 difference when comparing a bank loan to factoring invoices:
- No collateral is needed
- Fast application and approval process
- High probability of approval
- Low credit score admitted
- Quick cash - enhanced cash flow
Staffing Factoring Cost (Rates and Fees)
When considering factoring services for your staffing agency, understanding the costs is essential. At 1st Commercial Credit, we offer competitive and transparent rates, ranging from 0.69% to 1.59%. These fees reflect the flexibility and speed of our cash flow solutions, allowing you to access the funds you need quickly, without hidden costs. Whether you need immediate capital to cover payroll, manage contractor payments, or take advantage of new opportunities, our factoring rates provide a cost-effective way to improve your agency’s financial stability.
FAQ About Staffing and Factoring
Payroll factoring is not a loan; it involves selling your unpaid invoices to a factoring company in exchange for immediate cash. Unlike loans, which require you to take on debt and repay it with interest, payroll factoring gives you access to cash based on your receivables without incurring debt.
No, staffing factoring is neither a debt nor a loan. It involves selling your invoices to a third-party factoring company like 1st Commercial Credit. The funds advanced to you are repaid by your customers when they settle their invoices.
Factoring provides immediate access to cash, allowing you to cover payroll, benefits, and other operational costs. It reduces the wait time for payments, improves cash flow, and enables your agency to take on more clients and grow without financial strain.
Staffing agencies often encounter cash flow gaps caused by delayed client payments, as they typically have to pay employees weekly or bi-weekly while waiting 30 to 90 days for client payments. Rapid growth, managing payroll, and fluctuating seasonal demand can strain finances, especially when traditional financing options are unavailable. Factoring provides immediate access to working capital, helping agencies meet payroll, cover operational expenses, and maintain operations without waiting for client invoices to be paid.
