How Does a Staffing Agency Get Paid?

How Staffing Agency Payments Work – From Client Billing to Payroll Obligations

If you’re new to the staffing industry or considering starting your own staffing firm, one of the first questions you might ask is: How does a staffing agency get paid? It’s a great question – and understanding the payment process is critical for managing cash flow and growing a sustainable business.

In this post, we’ll break down how staffing agency payments work, from client billing to payroll obligations, and how to keep your staffing firm cash flow strong while navigating the time gap between paying employees and getting paid by clients.

Types of Staffing Agency Revenue Models

A staffing agency makes money by providing temporary, contract, or permanent workers to client companies and charging a fee for that service. There are a few primary ways staffing agencies get paid:

When Does a Staffing Agency Get Paid?

Here’s where things get more complex. In the contract staffing model, clients are typically invoiced weekly or biweekly after the worker submits and approves a timesheet. However, payment from clients can take 30, 45, or even 60+ days, depending on the agreed-upon terms. That means the agency is often paying employees weekly—before the client has paid their invoice. This creates a serious cash flow gap that many new agencies underestimate.

Staffing Firm Cash Flow: The Real Challenge

A healthy staffing agency cash flow is all about timing. You have to front the money for payroll,
taxes, and overhead while waiting to get paid by your clients. This cycle can cause strain, especially if your business is growing fast. That’s why many successful staffing firms turn to solutions like payroll funding or invoice factoring to smooth out their cash flow. These services allow you to get paid faster—often within 24 to 48 hours of submitting an invoice—so you can keep up with payroll and reinvest in growth.

How Advance Partners Helps Staffing Agencies Get Paid

At Advance Partners, we specialize in helping staffing agencies manage their cash flow with flexible funding and back-office support. Here’s how we do it:

• Payroll Funding: We advance you the funds to cover payroll as soon as you invoice your client—no more waiting 30+ days.
• Invoice Management: We handle your invoicing and collections, so you can focus on recruiting and running your business.
• Back-Office Support: Our team helps you stay compliant, pay your people, and scale smoothly.

We understand the unique payment cycle challenges that come with running a staffing agency, and we’re built to support your growth every step of the way.

Final Thoughts: Getting Paid Isn’t Always Fast—But It Can Be

So, how does a staffing agency get paid? The short answer: after they’ve done the work and
invoiced the client. But the longer answer involves careful cash flow planning, smart funding
solutions, and a strong back-office foundation.

Whether you’re just starting out or ready to take on larger clients, understanding your payment
cycle – and how to manage it – is key to long-term success.