Factoring for
Staffing Companies  

Estimated reading time: 4 minutes

Cashflow in the staffing industry | Solution to cash flow issues | How does factoring work? | What are the fees?

Cashflow in the staffing industry

Staffing companies are essential in today’s work environment. They provide valuable personnel based on industry experience and demand. United Capital Funding has extensive experience working with a wide variety of staffing companies from janitorial staffing to medical staffing.

However, you will discover that invoicing in the staffing industry has its own set of challenges. Its workforce is its product, and that workforce has to be paid on a regular basis. Perhaps you issue paychecks twice a month or biweekly, but how does that align with your cash flow when your customer pays 60 days after receiving the invoice? There will be times when the cash going out for payroll exceeds the cash coming in. Waiting for payment on your invoices will leave you scrambling to meet payroll needs, provide mandatory training, and ensure certification for your workforce.

Solution to cash flow issues

The best solution to solve cash flow issues is to inject more liquid cash into your cash flow process. If you don’t have cash on hand, we recommend applying for financing. A bank loan can provide excellent terms from a quality source of capital. Unfortunately, it can take several months to receive these funds and not many businesses may qualify (even if they are performing well).

This is where factoring comes into play. Not only can we get you from application to funds receive in 7 to 10 business days, but we are owned by an FDIC-insured bank. This means you’ll recieve high quality service and resources paired with a strong stable source of capital

Our experts provide factoring services with a focus on customer care and support. We want you to be comfortable, informed and educated about the process. We take the time to answer your questions and make sure you are fully aware of your options as a business in need of better cash flow. With factoring, your business will have fast access to the capital owed to you through your invoices.

As a client of United Capital Funding, here’s how it works:
  1. First, you fulfill the agreed-upon staffing needs laid out in your agreement with your customer.
  2. Then, generate an invoice for the total cost of the service provided and send copies to your customer and United Capital Funding.
  3. Our experts will verify the invoice, then wire a large percentage (typically 80%) of the invoice amount to your account, holding the remaining percentage (20%) until your customer pays the full invoice amount to our secure lockbox.
  4. Once your customer pays the full invoice amount to our secure lockbox, our team wires the remaining percentage (less our fees) to your account.
  5. Voila! You’ve successfully unlocked that capital.

Factoring is a steady, long-term solution for your invoice management. We allow you to choose which invoices you want to factor and you can access your invoices and reports through our secure online platform, all at no extra cost.

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What are the fees?

Our proposals are custom-priced on a case-by-case basis. To recieve a proposal, please click here to complete an application. Note that there is no cost to apply.

You will typically only encounter two types of fees – a fee for the cost of the capital and a banking fee (ACH or wire transfer charge). On average, our fees are lower than the industry average (according to Pepperdine Graziadio Business School’s 2019 Private Capital Markets Project). This keeps your total costs down and your invoice cycle efficient.

Please note, factoring is not a loan. It is an advance on pending payment by your customer, which means there is no repayment on your part.

Three Ways to Get Started

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“The first thing that strikes my mind when someone talks about customer service is United Capital Funding.”

Vice President, Illinois Staffing Firm

A leader in factoring for the staffing industry

Read our client testimonials to see why we’re a leader in factoring for the staffing companies.

Since 1997, our experts have helped the staffing businesses grow by providing a service that traditional lenders can’t. We make it easier for you to get the funding you need to enhance your business.

We can do this even if you are a startup, an 8(a) contractor, or are a company with a recent history of a less-than-profitable performance.