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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.

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 staff. Payroll financing is designed to help your staffing company make payroll before you are paid by your customers.

Fund Your Consulting and Temporary Staffing Firm Payroll

Advance Partners provides invoice factoring for staffing, recruitment and temp companies. We buy your outstanding invoices and provide you with as much working capital as you need to run payroll, take on new opportunities, and grow your firm.

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


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

Receipt &

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


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

  • 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

Reports &

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.

“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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Risk carefully, grow purposefully and — recruit and staff resourcefully with Advance Partners — fully committed to your forward momentum of your staffing & recruitment company.

Frequently Asked Questions

Companies fund payroll through various means, including revenue from sales, bank loans, lines of credit, or cash reserves. Some may also utilize payroll financing options provided by specialized 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 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 difference. Payroll funding is the term we use when talking about invoice factoring specifically for the staffing industry. 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 factoring companies for staffing agencies 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.

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

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.