One of the biggest challenges facing any staffing company is making payroll on time—especially when clients take 30, 45, or even 60 days to pay their invoices. Without a consistent cash flow, your ability to pay employees and contractors can quickly become strained. If you’re asking, “How do I make payroll for my staffing company?”—you’re not alone.
Fortunately, there are reliable solutions that can help you bridge the gap between issuing invoices and receiving payments. Whether you’re a start-up or a growing agency, understanding your options for managing payroll for your staffing company is critical to long-term success.
1. Self-Fund Payroll
In the early stages, many staffing company owners use their own funds or reinvest business profits to make payroll. While this can work temporarily, it becomes unsustainable as your staffing company grows and payroll obligations increase. The larger your payroll, the harder it is to cover from savings alone. This approach also limits your growth potential, as funds are tied up in covering weekly or bi-weekly wages.
2. Apply for a Business Line of Credit
Some staffing companies turn to banks for a line of credit. This can help bridge cash flow gaps and ensure you can make payroll. However, traditional banks often shy away from lending against accounts receivable—especially in the staffing industry, which doesn’t involve tangible assets.
Lines of credit can be helpful, but they are hard to qualify for, slow to obtain, and often not flexible enough to grow with your business. That’s why many staffing entrepreneurs look for alternative funding sources that align more closely with the nature of their operations.
3. Work with a Payroll Funding Company
Payroll funding companies specialize in helping staffing firms meet payroll by advancing funds based on your outstanding invoices. This is a widely used and effective method for managing payroll for a staffing company, especially one experiencing growth or inconsistent client payments.
These companies evaluate your receivables and client creditworthiness, and in most cases, you receive funding within 24 hours. This allows you to pay your workers on time, every time, regardless of when your clients pay.
4. Avoid Merchant Cash Advances (If Possible)
Merchant Cash Advances (MCAs) offer quick access to capital but come at a high price. They are often used as a last resort for businesses in urgent need of cash. MCAs are repaid daily or weekly from your future revenues, and the interest rates can be astronomical.
While it might seem like a fast way to make payroll for your staffing company, the long-term financial impact can be devastating. Many staffing companies find themselves in a debt spiral with no room for growth or flexibility.
5. Use Invoice Factoring to Fund Payroll for Staffing Companies
One of the most effective and sustainable solutions is invoice factoring—a proven way to finance payroll for staffing companies without taking on debt. With invoice factoring, a factoring company advances you cash based on your unpaid client invoices. You receive up to 95% of the invoice amount immediately, and the balance (minus a small fee) when the client pays.
Benefits of Invoice Factoring for Staffing Companies:
- Immediate cash flow to cover payroll
- No need for loans or credit checks
- Scales with your business growth
- Allows you to take on more clients without cash flow concerns
- Keeps your team paid on time
American Receivable: The Payroll Solution for Staffing Companies
At American Receivable, we understand the unique cash flow demands of staffing firms. For over 45 years, we’ve provided payroll funding for staffing companies across the country. Whether you specialize in healthcare, IT, light industrial, or clerical staffing, we have the experience and solutions to help you grow.
We offer:
- Fast funding – often within 24 hours
- High advance rates – up to 95% of your invoice value
- No hidden fees or long-term contracts
- Personalized service – speak with real decision-makers
Unlike banks, we base our decisions on your clients’ creditworthiness, not yours. That means even if you’re a start-up or have limited credit history, you can still qualify for funding.
Our factoring solutions are designed to make payroll for your staffing company predictable, reliable, and stress-free. We help you turn your receivables into cash—so you can focus on what matters most: running and growing your business.
Don’t let slow-paying clients jeopardize your payroll. Choose American Receivable as your trusted partner in invoice factoring and ensure your team gets paid on time, every time.
Jack Stieber [email protected] 972-404-4726
Julie Adams [email protected] 800-297-6652
Brad Gurney [email protected] 972-404-4726
Dakota Stieber [email protected] 800-297-6652
