Staffing Factoring
A working-capital structure built around the weekly payroll cycle of staffing firms, advancing cash against invoices issued to end clients so payroll funds before clients pay.
Why staffing is different
Staffing firms front payroll, taxes, and benefits weekly, but client payment terms typically run 30 to 60 days or longer. Every new placement widens the working-capital gap.
Staffing factoring is designed around this mismatch. Advances are calibrated to the gross margin and payroll cadence of the firm rather than to a fixed borrowing base recalculated quarterly.
Structural features
Funders typically advance 85 to 92 percent against eligible invoices and may bundle payroll funding, back-office support, and client-credit insurance into a single facility.
Best-in-class structures grow with the firm. As the placement base scales, the funding capacity scales with it, without renegotiating from scratch.
See how this structure is used in practice.
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