Staffing factoring is a type of invoice factoring that allows staffing agencies to get paid faster on outstanding invoices from customers. In exchange for a small fee, your company can receive the majority of the money due without the wait. This goes a long way in improving cash flow.

Factoring can be a valuable tool for any staffing business experiencing slow-paying clients or needing a cash flow boost. If you're struggling to meet payroll funding obligations, manage operational expenses, or pursue growth opportunities due to delayed client payments, then staffing invoice factoring can be a strategic solution.

In recruitment factoring, there are two main approaches to client non-payment risk. The most common is recourse factoring, where you're responsible if a client defaults. Non-recourse factoring shifts that risk to the factoring company for a higher fee, but it's less common in staffing factoring.

Staffing invoice factoring allows you to access up to 98% of the total invoice amount within a few business days. The exact time frame depends on the specific factoring company's process, but it's typically a much faster turnaround compared to waiting for clients to pay.

Staffing factoring rates can vary depending on several factors, including your industry, business size, and invoice volume. For the staffing industry, rates typically range from 1% to 3% of the invoice value.