Staffing agencies typically run $60,000 to $300,000 a month in deposits, and the structural gap here is the cleanest in commercial finance: temps get paid weekly, clients pay net-30 to net-60. Every payday, wages go out for hours already worked. The invoice for those same hours goes to the client on terms that commonly run 30 to 45 days, sometimes 60 with larger corporate accounts.
Growth makes it worse, not better. Every new placement means another weekly payroll obligation layered on top of receivables that won't collect for a month or two. An agency placing ten more temps this week has committed to that week's wages immediately and won't see the matching client payment until well into next month.
Two tools address it directly: payroll funding sized to the weekly run, or factoring the staffing receivables themselves. Either way, the client's credit quality — not the agency's — is usually the bigger factor in what a funder will approve, since the receivable being financed is the client's obligation to pay, not the agency's balance sheet.
of small business financing applicants received none of the financing they sought
Federal Reserve, 2026 Small Business Credit Survey
The other 78% were priced, sized, or declined differently — a number that matters more to a staffing agency than most, since payroll doesn't wait on an underwriting decision.
Enough to fund at least two to three full weekly payroll runs before the matching client invoices collect — typically $60,000 to $300,000 a month in deposits for agencies in this range. The right size scales with headcount on assignment and client payment terms, not a flat number.
Core placements here run $50,000 or more a month in deposits, which is where most staffing agencies of any real size already sit. Most deals land between $20,000 and $200,000 a month, with a dedicated program below that.
Because wages are due weekly for hours already worked, while the client invoice for those same hours is due on net-30 to net-45 terms — sometimes net-60. The table below shows why the gap never fully closes while the agency is placing new temps every week.
| Week | Payroll paid (cash out) | Client payment collected (cash in) | Running gap |
|---|---|---|---|
| Week 1 | $12,000 | $0 | $12,000 |
| Week 2 | $12,000 | $0 | $24,000 |
| Week 3 | $12,000 | $0 | $36,000 |
| Week 4 | $12,000 | $0 | $48,000 |
| Week 5 | $12,000 | $0 | $60,000 |
| Week 6-7 (net-45 lands) | $12,000 | $15,000 (Week 1 invoice) | $57,000 |
By the time the first invoice collects, the agency has already funded five more weeks of payroll out of its own cash — against a single client. Multiply that by a full client roster and the running gap is the agency's normal operating condition, not a rough patch.
Payroll funding advances cash specifically against the next payroll run; factoring sells the client invoices themselves, usually the day they're issued. Both solve the same gap from different ends.
| Structure | Financed against | Fits best when |
|---|---|---|
| Payroll funding | The upcoming weekly or biweekly payroll obligation | You need cash on a fixed payroll calendar, regardless of which client invoice it's tied to |
| Factoring staffing receivables | Specific client invoices, sold at a discount, often the day they're billed | You want funding that scales directly with billed hours and client volume |
| Revenue-based advance | Overall agency deposits | You need general working capital not tied to one client or one payroll date |
| Line of credit | A borrowing base of eligible receivables | You have financial statements and want the lowest ongoing cost with revolving access |
Factoring and payroll funding are both structured against receivables, not as loans — priced as a discount or factor rate, not an interest rate. A line of credit is a credit facility and carries interest on what's drawn.
Because the receivable being financed is the client's promise to pay, not the agency's balance sheet — a funder is really underwriting the client roster. An agency placing temps with a single small, thinly capitalized client is a materially different risk than one billing a large, well-rated corporate account, even at identical revenue. Client concentration and client credit quality typically move an approval more than the agency's own financials.
The payroll-to-collection gap widens fastest exactly when the agency is growing fastest. A new contract or seasonal ramp adds headcount and weekly payroll immediately, while the client invoices for that new volume still sit on the same 30-to-60-day terms. This is the single most common reason a staffing agency's cash gets tightest right when the business is winning, not losing.
A few honest lines before financing the gap:
Payroll's due Friday. The invoice isn't. Tell us your weekly payroll and client terms, and we'll size what actually closes the gap — payroll funding, factoring, or general capital.
See your options →No credit pull to talk. Business-purpose financing only.
Under $20K a month in deposits? Most of what's above is priced for businesses doing $50K or more a month in deposits — that's the core of what we place. Funding doesn't stop below that line, though; the structure just changes. There's a program built for exactly your revenue level, and the same rule applies either way.
See what you qualify for →Handled through a funding partner. No upfront cost, and we're paid only if it funds.