Invoice Factoring for Staffing Companies
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Why Staffing Companies Face Unique Cash-Flow Challenges
1. You’re paying temps, contractors or staff every week, but your clients often pay on extended terms.
2. You’re placing people, delivering a service, invoicing your client — yet there’s a gap before payment arrives.
3. That gap restricts taking on new contracts, investing in marketing, hiring etc.
4. Invoice factoring shifts that cash-flow risk so you can concentrate on running & growing your business rather than chasing payments.
What is Invoice Factoring?
•Invoice factoring means a finance provider buys or advances against your outstanding invoices so you don’t wait the full term for payment
• The provider then handles the collection of your invoices (in many factoring agreements)
• Typical process: you send your invoice → you receive an advance (e.g., up to 90% of invoice value) → when your client pays, the balance (less fees) is released. Typical process: you send your invoice → you receive an advance (e.g., up to 90% of invoice value) → when your client pays, the balance (less fees) is released
How Invoice Factoring Works for Staffing Companies?
1. You provide staffing services and issue invoices to your clients (for e.g. placed contractors, temporary staff, service fees).
2. You submit those invoices to the factoring provider or broker (via us, simplyfactoringbrokers).
3. You receive an advance, typically a large percentage of each invoice value.
4. The provider manages credit control/collections (depending on factoring vs discounting) and your client pays the provider.
5. Once payment is received, you get the remaining balance minus the factoring fee.
As you issue new invoices, the facility can scale with you. This is precisely how staffing-specific factoring works in practice.
If you invoice clients after placements, factoring can unlock the cash tied up in those invoices, giving you immediate working capital.
Benefits of Recruitment Invoice Finance
Steady cash flow
Never miss payroll
Outsource admin
Access extra capital
Reduce stress around late-payers
When Invoice Factoring Makes Sense for Your Staffing Business
Ideal scenario if:
You invoice business-clients (B2B) on terms (30-90 days) but need to meet weekly or monthly payroll.
You have a reliable placement/invoicing track record (even if still growing).
You want a funding option that grows with your invoice volume rather than a fixed monetary loan.
You prefer to outsource the credit collection burden so you can focus on service.
Might not be the best fit if:
You invoice customers who pay very quickly (e.g., within 7 days) and the gap is minimal.
Your client base is high-risk / lots of non-payments or unresolved collections.
You already have excellent internal credit control and want to keep full control of collections (then invoice discounting may be better).
Why Choose Simply Factoring Brokers for Your Staffing Business
1. Specialist in staffing & recruitment sector – We understand the payroll-invoice gap and the specific cash-flow pressures.
2. Tailored solutions – We compare factoring vs discounting, different funders, and find deals optimised for your placement model.
3. Quick, transparent service – We aim to give you clear terms, explain all fees, and get you access to funds fast.
4. Broad network of funders – We work with funders experienced in servicing staffing firms, so you benefit from their sector-specific expertise.
5. Focus on your growth – With your cash flow secured, you focus on placing staff, winning contracts and scaling your agency, we handle the finance side.
How to Get Started
1. Get in touch for a no-obligation consultation — we’ll review your business, invoicing profile, client base and cash-flow needs.
2. Provide us with your recent invoices, debtor aging, placement history and clients’ payment terms.
3. We’ll match you with suitable funders and present you with options tailored for your staffing business.
4. Once agreed, select the initial invoices to fund and unlock your cash flow.
Grow your placements, invoice volume and scale the facility with ease.
Call for invoice factoring services
Fund Your Business Today – Call 0333 772 1558 to release funds tied up in your invoices
FAQs About Recruitment Factoring
How quickly can we get funding after choosing invoice factoring?
Once the facility is approved and your invoices submitted, many funders can advance money within 1-2 business days. The key driver is client payment terms and debtor profile.
Do I have to use all my invoices or just some?
Generally you can choose which invoices you want to fund. So you aren’t forced to put your entire book into the facility if you don’t wish to.
What happens if one of my clients doesn’t pay?
This depends on the specific factoring product. Some are non-recourse (where the funder bears the risk of client non-payment), others are recourse (where you retain the risk). We’ll review the terms.
Is this suitable for very small staffing agencies or ones just starting?
Yes, many funders will work with smaller or growing staffing businesses, though the terms may be less favourable. The stronger your client invoice history, the better.
How much does it cost and what fees should I expect?
Typical fee components include the discount fee (percentage of each funded invoice) and a service fee or set-up fee. The exact cost depends on your invoice volume, client quality, advance rate and whether bad debt protection is included. Always review full cost disclosure.
Will my clients know I’m using a factoring company?
With traditional factoring typically yes, because the factor takes over collections. However, in some arrangements (confidential factoring) your clients may not be aware.