Factoring for:
Staffing Companies
Helping business owners get the cash flow they need.
What is Factoring
Types
Benefits
How it works
Sigma Funding
What are Invoice Factoring Services, and How Can They Help Your Business?
Running a staffing business can be challenging—managing payroll, covering operational expenses, and ensuring cash flow despite clients taking weeks or months to pay invoices. At Sigma Funding Group, we provide factoring for staffing solutions tailored to staffing agencies, enabling you to convert unpaid invoices into immediate cash. This helps you maintain your business’s momentum without cash flow worries.
Invoice factoring is a financial solution that allows staffing agencies to convert their unpaid invoices into immediate cash. This process involves selling outstanding invoices to a factoring company, which then advances a significant portion of the invoice value to the staffing agency. The factoring company then collects the full amount from the client, minus a small fee. Invoice factoring provides staffing agencies with the necessary cash flow to meet their financial obligations, such as payroll expenses, and to take on new clients and grow their business.
Why Choose Invoice Factoring for Your Staffing Company?
Staffing agencies, like yours, often face a significant gap between paying their staff weekly and receiving client payments months later. This imbalance can lead to:
Negative Cash Flow
Struggling to manage day-to-day operations and expenses.
Limited Growth Opportunities
Lacking the funds to expand or secure new contracts.
Missed Payments
Being forced to defer bills or delay payroll.
How Does Invoice Factoring Work?
Submit Your Invoice
Send us the invoices owed by your clients.
Receive Your Funds Quickly
With invoice factoring for staffing, we’ll advance you up to 90% of the invoice value within 24–48 hours, converting unpaid invoices into working capital.
Clients Pay Us
Your clients pay the invoice on their normal schedule, and we handle all collections.
You Receive the Balance
Once your client pays, we send you the remaining funds, minus a small factoring fee.
Choosing the Right Factoring Company
When choosing a factoring company, staffing agencies should consider several factors, including:
Reputation
Experience in the staffing industry
Experience
Competitive rates and fees
Fees
Flexible terms and conditions
Flexibility
Good customer service and support with Transparency and honesty in their business practices
Key Benefits of Our Factoring Services
Reliable Cash Flow
Fact: Say goodbye to the waiting game. By converting your accounts receivable into immediate cash, our service provides you with the financial stability to focus on what matters most—running your business. With our service, you’ll receive immediate access to cash for your invoices, giving you the financial stability to focus on what matters most—running your business.
No New Debt
Fact: Unlike loans, factoring invoices isn’t about borrowing money. It’s about accessing the cash that’s already tied up in your unpaid invoices, helping you stay debt-free.
More Opportunities
Fact: With a consistent cash flow enabled by staffing invoice factoring, you’ll have the freedom to hire more staff, take on new clients, replenish inventory, and grow your business without hesitation.
Stress-Free Operations
Fact: Focus on staffing and scaling without worrying about how to make payroll or juggle overdue bills. By factoring staffing agency invoices, you can manage operational costs more effectively. We’ll handle the invoicing, so you won’t need to chase clients for payments.
Invoice Factoring vs. Bank Line of Credit
Invoice factoring and bank lines of credit are both financial solutions that can provide staffing agencies with the necessary cash flow to meet their financial obligations. However, there are some key differences between the two.
Invoice factoring is a more flexible and faster solution than a bank line of credit. With invoice factoring, staffing agencies can receive immediate cash for their unpaid invoices, whereas a bank line of credit may take several weeks or even months to set up. Additionally, invoice factoring does not require a good credit history or a lengthy credit history, whereas a bank line of credit typically does.
On the other hand, a bank line of credit may provide staffing agencies with a more traditional funding solution and may offer more competitive rates and fees. However, bank lines of credit often require a good credit history and a lengthy credit history, and may have stricter repayment terms.
Ultimately, the choice between invoice factoring and a bank line of credit depends on the staffing agency’s specific needs and qualifications. Staffing agencies should carefully consider their options and choose the solution that best meets their financial needs.
Qualifications for Invoice Factoring
To qualify for invoice factoring, staffing agencies typically need to meet certain criteria. These may include:
Revenue
Having a minimum amount of monthly revenue or invoices
Credit history
Having a good credit history, although some factoring companies may consider agencies with poor credit
Have A Managed Tax Balance
Having a managed tax balance with the IRS and/or CRA
Customer Base
Having a diverse customer base with a high percentage of creditworthy customers
Factoring companies may also consider other criteria, such as the agency’s years in business, customer base diversity, and overall customer credit quality.
Take Control of Your Cash Flow
Stop letting unpaid invoices hold your agency back. Staffing factoring companies provide financial solutions tailored to staffing agencies, ensuring immediate cash flow by purchasing accounts receivable.
Sign up for our factoring services today—and give your business the flexibility it needs to thrive. Whether you’re a small staffing agency or an established force in your field, we’re here to help you succeed.
Get Paid Faster with Sigma Funding Group
