Payroll Funding for Staffing Companies
Payroll funding unlocks opportunities for staffing agency growth, immediately boosting cash flow and allowing you to make payroll on-time without stress.
tailored Cash Flow Solution
What is Payroll Funding?
Payroll funding, also known as invoice factoring, is an alternative financing solution where staffing companies sell outstanding receivables in exchange for an immediate advance against each invoice.
This flexible funding solution is tailored specifically for staffing agencies that struggle with slow-paying customers or long payment terms. With payroll funding, you don’t have to wait weeks to get paid for your work. Instead, get paid within 1 to 2 days and have immediate access to working capital so you can always pay your employees on-time.
Convert Unpaid Invoices into cash
Our Payroll Funding Process
- Step One: Invoice your customer as you normally would.
- Step Two: Submit the invoice to altLINE.
- Step Three: Receive an immediate cash advance of 80%-90% of the invoice’s value.
- Step Four: altLINE assumes collection responsibilities with the help of your dedicated account manager.
- Step Five: Once your customer submits payment to altLINE, unlock any remaining funds, minus factoring fees (0.75-3.50%).
Benefits of Payroll Funding for
Staffing Companies
Qualifying for most traditional financing solutions requires strong business credit, which many small staffing agencies do not have. However, altLINE focuses on your debtors’ credit rather than your own, meaning you can qualify for payroll funding easier than traditional options.
GROW YOUR AGENCY
Take on new contracts, bring on more staff, and grow your company how you’d like.
BOOST WORKING CAPITAL
Increase working capital with a funding solution that grows with you.
get BACK OFFICE support
Our team will credit check your customers and aid in invoice collection.
access funds quickly
Once you’re set up in our system, you will receive funding in no less than 24 to 36 hours.
enjoy fLEXIBLE financing
Our industry experts can create a tailored payroll funding solution for your business.
Trusted, Transparent, Tailored
Why Work With altLINE?
Industry Expertise You Can Trust
- A team of staffing industry experts
- 88 years of experience serving customers
Secure and Transparent Financing
- FDIC-regulated lender
- Direct bank funding with some of the lowest rates in the market
- Transparent rates with no hidden fees
Personalized Support for Your Business
- Dedicated account manager to assist with funding needs
- Customized payroll funding programs tailored to your business
Fast and Flexible Funding Options
- Quick payroll funding when a line of credit is not an option
- Flexible financing solutions to support business growth
Confidence and Stability in the Marketplace
- Work with a trusted bank-backed provider
- Reliable funding to help your business scale
Client Success Story
See How altLINE Helped a Client Grow 1000%
Frequently Asked
Payroll Funding for Staffing Companies FAQs
How much does payroll funding cost?
The cost of payroll funding for staffing agencies can range from 1-5% of the invoice face value, depending on several criteria. In general, the faster your debtors tend to pay, the better rate you will receive.
Is payroll funding common for staffing companies?
Yes! Payroll funding is a common solution for staffing companies and temp agencies. Because invoice payment terms are typically 30 to 60 days, but payroll is usually paid on a weekly or bi-weekly basis, many agencies turn to this tailored solution. Payroll funding provides working capital to staffing companies to make payroll before receiving payment on their outstanding invoices. This additional working capital can help business operations run more smoothly and reduce the stress of running a small business, all while growing your staffing company.
What types of staffing companies use payroll funding?
Because payroll funding is a scalable financing solution, it’s useful for a variety of staffing companies, from small startup agencies to well-established and mature companies. Payroll funding is used most commonly by staffing agencies that keep employees on their payroll, such as temporary staffing and temp-to-hire staffing firms. Agencies that may not benefit as much from altLINE’s payroll funding services include direct hire placement and executive search firms.
Is a payroll financing service worth it for staffing companies?
Using a payroll funding provider is more beneficial for some staffing agencies than others. For example, staffing companies that need to make payroll before receiving payment on their outstanding invoices are well positioned to use a payroll financing service. However, if your staffing company already has the working capital in place to make payroll easily and grow your business without worry, you might not need it.
If you are unsure if payroll funding is the right solution for your staffing agency, fill out our quote form or speak with an altLINE representative by calling +1 (205) 607-0811. Our representatives will discuss your financing needs with you and make a recommendation on the best funding option for your business.
Is payroll funding different than invoice factoring?
No. Payroll funding and invoice factoring are one in the same. The term “payroll funding” is used most commonly in the staffing industry because factoring funds are almost always used to help make payroll on-time.
Highly Rated on Trustpilot
Explore More
Startup Funding Resources
Payroll Funding for Staffing agencies: How It Works, how much it costs & Benefits
In this article, learn even more about how payroll funding works, how much it costs, its pros and cons, and how to get started.
Payroll Funding vs. Payroll Loans: Key Differences, pros and cons & Best Choice
Payroll funding and payroll loans may sound similar initially, but these financing options are quite different.
