Between lengthy waits for client payments and inconsistent cash flow, staffing factoring has increasingly become a critical lifeline for the industry. As a leading staffing factoring company, Viva has been supporting staffing firms for decades.
We can affordably help to improve cash flow through factoring for staffing companies to ensure you retain top talent and grow your business, all while providing the kind of white-glove service your firm and clients deserve.
What Is Staffing Invoice Factoring and How Does It Work?
Staffing invoice factoring is a funding solution that helps staffing agencies improve cash flow by converting unpaid invoices into immediate capital. Instead of waiting 30, 60, or 90 days for clients to pay, agencies can access funds quickly by working with a factoring company. This allows staffing firms to meet their payroll, pay operational expenses, and take on larger contracts without incurring debt.
Here’s how it works:
- The staffing agency provides temporary or permanent staff and issues an invoice to the client.
- The agency submits the invoice to a factoring company, which advances a percentage of the invoice value—often between 80% and 95%.
- When the client pays the invoice, the factoring company deducts a small fee and sends the remaining balance to the staffing agency.
This simple and efficient process allows staffing agencies to focus on growing their business while ensuring they always have the capital to make payroll and cover expenses.
Staffing Factoring Company
In addition to traditional factoring company services, Viva’s offerings for staffing firms include an experienced and dedicated team to accelerate your billing and collections process, so your operations run smoothly and assistance is always close at hand. Whether your firm is small or you’re taking on large clients, have an occasional cash flow shortfall that might otherwise threaten critical payments like weekly payroll, or qualify for volume discounts, our team will work with you to create a custom solution, complete with a transparent quote and competitive rate.
Payroll Funding
Paying staff on time every time is essential for any business, but in the staffing industry, delayed payroll can cost you your greatest asset: talent. Slow-paying clients put the lifeblood of your staffing firm at risk by leaving you without the working capital you need. Invoice factoring is an effective, flexible, and fast payroll financing option for staffing companies. Ensure a consistent revenue stream and rapidly meet your payroll needs with Viva’s factoring services.
Staffing Factoring Process
Send your talent to work.
Submit a copy of the outstanding invoice.
Viva purchases the invoice and advances up to 100% of the face value.
We collect payment on the invoice from your client, making it easy and delighting them with great service.
Testimonial
I was a brand new business owner and I was new to doing payroll for my healthcare staffing company. The Viva Capital staff were very informative and they checked in with me every step of the way to make sure I was on track with having funding in place before my first payroll. The ability to grow and bring on more employees without having to worry about how I would find the working capital to grow my business is the most obvious advantage I felt Viva Capital has offered me.
Alisa A. | Staffing | North Carolina
Benefits of Using Our Staffing Invoice Factoring Services
Our experience spans across a wide variety of industry niches, from security guard companies to IT consulting companies, general staffing businesses, and more. Whether you’re considering factoring as a short-term solution or want to accelerate your cash flow indefinitely, working with Viva Capital is a great way to raise profit margins, ensure rapid payment, and structure a constant revenue stream.
Low Rates
Keep more money in your business with competitive rates starting at just 0.75% for qualifying clients and can be prorated.
High Advances
Get advances up to 100%.
Fast Funding
Receive your advance on the same day to accelerate cash flow even more.
Easy Qualification
Most staffing companies will qualify regardless of credit or time in business.
Quick Start
Begin factoring right away with our streamlined setup process.
24/7 Account Access
Check out your account anywhere, anytime through your Customer Account Portal.
Seasonality Services
Navigate seasonal swings with ease using our seasonality services.
Additional Services
Take advantage of value-added services such as debtor credit checks, billing, and collection services.
Factoring for Staffing Advantages
Easily secure the funding needed for payroll, payroll taxes, office supplies, and more.
Viva Capital provides fast cash to small and medium-sized staffing companies. Through factoring, staffing firms can easily secure the funding needed for things like payroll, payroll taxes, and office supplies without taking on debt or getting tied down in long-term commitments.
- Specialized staffing factoring programs
- Quick payment (get paid in hours)
- Credit checks before deploying talent
- Low factoring fees
- Flexible volume requirements
- 24/7 account access
- A dedicated customer service team that knows your account
Understanding Factoring Rates and Fees for Staffing Businesses
For staffing agencies, maintaining cash flow is critical to meet payroll and cover operating expenses while waiting for clients to pay their invoices. Invoice factoring for staffing provides a fast and reliable funding solution, but understanding how factoring companies charge is essential when evaluating costs.
The factoring rate typically ranges from a small factoring fee of 1% to 5% of the total invoice amount, depending on factors like invoice value, client creditworthiness, and payment terms. A factoring company advances a percentage of the invoice—often between 80% and 95%—to provide immediate working capital. When the customer pays the invoice, the factoring company takes its agreed-upon fee and then forwards the remaining amount to the staffing agency.
There are also different types of factoring agreements. In recourse factoring, the staffing agency is responsible if the client doesn’t pay, while in non-recourse factoring agreements, the factoring company assumes the risk but at a higher cost. Factoring can help staffing firms avoid debt by offering an alternative to a loan or line of credit, making it a practical business funding solution.
Free yourself to focus on everything a busy staffing firm needs.
Factoring with Viva is a smart choice for staffing agencies of all types. Factoring a staffing invoice is based on your client’s credit and their ability to pay, since they’re the ones making the final payment. That means your credit, financial history, and business size will not impact your ability to factor!
With your cash flow concerns solved, you’re free to focus on:
- Hiring and retaining talent
- Attracting larger accounts
- Managing payroll
- Paying payroll taxes
- Purchasing office equipment
- Expanding your operations
Why Viva Capital?
We work quickly and efficiently because we know that’s what your line of work requires. If you have to fill a request for talent, but your last client hasn’t paid, you need immediate working capital to meet their demands. That’s where Viva Capital comes in. You keep the economy running with a constant infusion of eager workers. Let us keep your company running with a continuous flow of capital.
If you are considering staffing factoring and would like to hear more about all our benefits, contact Viva Capital Funding today!
Find out how Top of the Line Healthcare Staffing, a Viva Capital Funding client, boosted their revenue by 1000% with the help of Viva Capital.
Staffing Factoring FAQs
What is staffing factoring?
Staffing factoring is a financial service where staffing agencies sell their unpaid invoices to a factoring company for immediate cash. This helps the staffing company cover payroll and operational expenses even when client payments aren’t due for another 30, 60, or 90 days.
How does factoring benefit staffing agencies?
Factoring benefits staffing agencies by providing quick access to cash, allowing them to pay employees on time, cover recruiting costs, and manage other expenses while waiting for clients to pay.
How quickly can staffing companies receive funds through factoring?
Staffing companies can typically receive funds within 24-48 hours after the factoring company approves invoices. However, Viva Capital offers same-day payments, expediting the process even more.
What types of staffing agencies qualify for factoring?
Temporary staffing firms, permanent placement agencies, and recruiting firms can qualify for factoring. Any staffing company that bills creditworthy clients and experiences delayed payments can benefit.
Can small staffing companies use factoring?
Yes, small staffing companies can use factoring to improve cash flow. Unlike loans, lines of credit, and other common funding methods, factoring isn’t contingent on your credit history or years in business. This makes it much easier for small staffing firms to qualify.
Is staffing factoring considered a loan?
No, staffing factoring is not a loan. It’s a financial transaction where staffing agencies sell their receivables for immediate cash. No debt or interest accrues, so there’s nothing for the staffing agency to pay back.
What is the difference between factoring and payroll funding for staffing?
Factoring involves selling invoices for cash, while payroll funding provides direct financing to cover payroll expenses. Both improve cash flow and can be used to cover payroll, but factoring focuses on receivables.
