BusinessCash is funding during the COVID-19 crisis.

As the US economy continues on its upward path, the demand for temporary staffing is growing even faster.

The Staffing Industry Analyst, a global advisor on temporary and contingent work, is projecting the staffing to grow by 3% in 2017. Indeed, temporary staffing has grown as a percentage of overall employment in the US. Temporary staffing is projected to increase by 3% in 2018 to $126.8 billion with the overall staffing market likely to achieve 4% growth to reach $146.6 billion.

Even more dramatic is the share of new jobs added to the economy over the past year that came from the temp staffing industry. During the first nine months of 2014, this ratio was in the 8% to 10% range; the Staffing Industry Analysts report stated.

These trends reveal continued growth in revenues and profitability for staffing firms. At the same time, growth also means continuing and ongoing struggles in staffing companies’ cash flow. The reason: Client companies often take their time paying their invoices; usually taking them 30 to 60 days. Meanwhile, the staffing firm needs cash to meet their current operating expenses, payroll commitments to the staffers they hire. They may also need money for investment in sales and marketing for business growth.

AR Financing for Staffing Firms & Payroll companies

How Payroll Funding for Staffing Works

A Solution for Cash Flow Squeeze

There’s a solution to staffing firms’ cash flow requirements – non-recourse accounts receivable financing and payroll funding. In all cases, the staffing firm receives immediate cash from a financing firm to take care of its current requirements.

The staffing firm can use factoring or accounts receivable financing to secure immediate cash. In this case, a factoring company purchases the firm’s receivables, providing a portion of the value of the receivables – up to 92%, depending on the quality of the receivables. You will receive the outstanding balance once your customer has paid minus low-cost fees. This is less a small percentage fee for providing its service, which often covers collections.

Payroll funding is a form of accounts receivable factoring. Typically, staffing companies pay their employees weekly. However, the staffing firm may not receive the payment from their client companies for several weeks. Payroll funding eliminates this time gap between payroll outlays and invoice receipts. At the time the invoice or employee timesheets are submitted, the payroll funding company purchases the invoice from the staffing company. The funding company collects on the invoices when the client company makes payment.

Look Into Non-Recourse Accounts Receivable Financing

If you run a staffing firm that is encountering a cash flow squeeze – and what firm isn’t? – then you should consider the use of accounts receivable financing and payroll funding. has been a provider of funding services to the staffing industry for nearly two decades, with hundreds of satisfied staffing industry customers across the country. Our team includes highly experienced receivables financing specialists – and can provide you with the financing you need in short order.

Staffing companies can get funding now! Call (888) 400-5930 or use the fast, safe & secure online funding application.

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