Payroll Funding & Invoice Factoring Staffing & Recruitment Agencies

Payroll funding is a creative, flexible way to fuel your staffing firm’s growth without the restrictions and red tape of traditional bank loans or lines of credit.

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What is Payroll Funding?

Also known as invoice factoring, invoice financing or A/R funding, payroll funding allows you to sell your accounts receivable for cash to meet payroll for 1099 employees, independent contractors, and other talent staff. Payroll financing is designed to help your staffing company make payroll before you are paid by your customers.

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Advance Partners provides the best invoice factoring for staffing, recruitment, and temp companies. Our flexible financing options are a favorite among firms looking to improve cash flow and ensure payroll runs smoothly. We buy your outstanding invoices and provide as much working capital as you need to run payroll, take on new opportunities, and grow your firm. Whether you’re seeking quick access to capital or strategic growth support, we have the solutions to meet your business needs. Contact us today to meet with one of our factoring specialist to discuss a long-term payroll partnership.

FUNDING AND LENDING

Why Choose Payroll Funding Over Banking?

Banking is one choice, but is it the right choice? Take control of your credit. We share why funding is the better option.

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BACK OFFICE

3 Ways You Could Be Losing Money Without the Right Funding Option

Does your firm have the right funding option in place? If not, it may be costing you money.

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Quick access to capital is just the start. Explore the world of payroll services that come with our funding solutions.

Factoring Solutions & Services

Invoice Factoring

What is invoice factoring? It’s simply another name for payroll funding. We buy your recruitment business’s outstanding invoices and advance your cash, immediately.

  • Improve your staffing cash flow, get unlimited access to funds at competitive rates
  • Advance rates of 80 to 100% upfront
  • No additional fees and flexible contract terms

Credit Control Research

Leverage rigorous credit history assessments of potential customers to ensure you pursue (and win!) the right business.

  • Improve decision making and reduce risk with more data
  • Access detailed risk profiles from our expert credit team
  • Get D&B financial reports for any potential partner

Cash Receipt & Application

Extend the power of your accounting team with expert assistance managing customer payments, disputes, and adjustments.

  • Gain a dedicated cash disbursement manager and VMS Research Analyst
  • Outsource disputes, adjustments, and late/partial/missing payments
  • Proactively identify issues that keep you from getting paid

A/R Collections Management

Free your internal resources to focus on new opportunities and talent recruitment as Advance Partners takes on your accounts receivable and collections management.

  • Improve your Secure payment collection from your customers to a 24-hour lockbox
  • Payment processing within 24 hours
  • Legal guidance and support if customers default on their payments

Custom Reports & Analytics

Easy-to-use Advance Partners reporting tools provide your staffing agency with comprehensive, real-time insight into all services and status.

  • Available 24/7 and tailored to staffing industry needs and data
  • Reports include: Summary Report, Assignment Report, Collections Report, Detail Aging Analysis Report, Average Pay Days Report, Short Paid Exemption Report, etc.
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Learn Why We Are The Best Lending Option

“South Sound Staffing has been working with Advance Partners for two years now and we continue to be impressed with their services and products. Our growth is largely because of the support we have that our Payroll and Invoices are taken care with AP. We highly recommend using them for your business needs.”

– Brittney Hays
Owner, South Sound Staffing

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Recruiting Veterans E-book

Every year, 250,000 service members transition from military to civilian life. They join thousands of other veterans across the nation who are looking to advance their careers outside of the highly disciplined military environment. Veterans are a desirable demographic, and it takes a special mindset and knowledge to recruit them. Our Veteran Recruiting E-Book provides…
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Risk carefully, grow purposefully and — recruit and staff resourcefully with Advance Partners — fully committed to your forward momentum of your staffing & recruitment company.

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Frequently Asked Questions

Companies fund payroll through revenue from sales, bank loans, lines of credit, or cash reserves. Some may also utilize payroll financing options provided by specialized staffing funders and lenders to ensure timely payments to employees while managing cash flow fluctuations.

Payroll funds primarily come from a company’s operating budget, which includes revenue from sales and services. In some cases, companies may also utilize loans, lines of credit, or payroll financing services as funding resources to ensure they have sufficient funds to meet their payroll obligations on time.

Payroll funding involves selling accounts receivable to a third-party company at a discount. The factoring company advances a percentage of the invoice value upfront, typically 70-90%. Once the customer pays the invoice, the factoring company releases the remaining balance, minus a fee. It’s a common financing option for businesses to improve cash flow.

No there is not a difference. Payroll funding is the term used when talking about staffing industry invoice factoring. It involves selling unpaid invoices, or accounts receivables, to a third-party company and getting working capital upfront. The factoring company advances a percentage of the invoice value upfront, typically 70-90%. Once the customer pays the invoice, the factoring company releases the remaining balance, minus a fee. It’s a common financing option for businesses to improve cash flow.

Invoice factoring is designed specifically for businesses like staffing because of the unique payment structure. In staffing, you often have to wait 30-90 days for payment from your clients, while you pay your staff weekly. This can cause a cash flow nightmare, and be limiting to your growth. Invoice factoring gives you the cash necessary to grow without having to worry about making payroll.

The best funding sources for staffing companies offer tailored solutions, competitive rates, and excellent customer service. Some reputable options include Advance Partners, eCapital, and Riviera Finance, each specializing in supporting staffing agencies with invoice factoring and payroll funding services.

The cost of factoring is variable and depends on many factors – the amount of your receivables, financial stability of your business, the size of each invoice, etc. To get a true estimate of the cost for your individual business, contact an Advance Partners rep today for a free consultation.

Full service is an add-on service where the same third party that does your invoice factoring will also do back office tasks like creating and processing invoices, processing payroll, and doing payroll taxes.

Up to 90%+ for Funding Only clients and 100% for Full Service clients.

Each agreement is customized to meet individual growth goals. Our typical agreement term is 18 to 24 months.

No. We request a personal guarantee.

We require an invoice register, sent via fax, email, or on-line, with back-up invoices and timesheets. Learn more about our payroll processing and timesheet services for recruitment agencies.

Cash is posted daily. Payments received at our office by 2:00 p.m. EST are credited within one business day. All profits and reserves are released weekly.

Yes. Customized solutions are available for clients of all sizes.

Any invoice under 90 days old for service performed to an approved customer. Longer eligibility terms considered.

Typically, yes. We can, however, create multiple rates to allow our clients to use more of their own capital if desired.

Rates are individually quoted and are determined largely by each client’s volume, financial strength, quality of receivables, timeliness of payment, and the type of program; our Funding Only, or Full Service Funding program.

We work under a single fee structure that covers all negotiated services and typically have no add-on fees: No monthly service fees No origination fees No renewal fees No miscellaneous fees No auditing fees No line maintenance fees No charge for credit research No charge for wires No charge for overnight delivery service

No

No, we offer unlimited funding.

Yes. Credit management is a critical success factor for small and medium staffing companies. We have an outstanding Credit Department: highly skilled, experienced, and flexible.

Yes, factoring companies typically send out 1099 forms to businesses whose invoices they have purchased and collected payment for during the tax year. This form reports the income received by the business from the factoring company and is used for tax reporting purposes.

Factoring companies ask for tax documents to verify the financial health of the business and assess its ability to repay the advance. These documents, including tax returns and financial statements, help factoring companies determine the creditworthiness and risk associated with funding the business’s invoices.