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Factoring for Staffing Agencies

Our customized factoring program for staffing agencies enables companies to finance their invoices. The program provides immediate funds so your agency can cover payroll and other essential expenses. More importantly, factoring can provide a stable financial platform that you can use to grow your business.

Commercial Capital LLC has over 20 years of experience providing financing solutions to small and midsize staffing agencies. We offer competitive rates, high advances, and flexible plans.

For more information, fill out this form or call us toll-free at (877) 300 3258.

How does it work?

Factoring programs integrate well with staffing agencies. The programs finance your invoices in two instalments. The first instalment is the advance. It covers 90% to 95% of your invoice and is deposited into your account shortly after processing.

The remaining 5% to 10%, less the factoring fee, is deposited into your account once your end customers pay the invoice on their usual terms. This payment settles the transaction.

New and growing staffing agencies use factoring regularly since it provides the funds to cover payroll and other essential expenses. Learn more by reading “How Does Payroll Financing Work?

High advances

A high factoring advance is essential for growing staffing companies. It helps ensure you have enough funds to cover your growing payroll.

Commercial Capital offers high advances to help staffing companies meet these objectives. Advances for staffing companies usually start at 90% and can be as high as 95%, depending on the transaction details.

Competitive costs

Commercial Capital offers competitive rates for staffing agencies. Rates are determined by your volume and how long your invoices take to pay.

For more information, fill out this form or call us toll-free at (877) 300 3258.

Clear benefits

A well-structured receivables factoring plan has several advantages for staffing agencies. These include the following:

  1. Provides immediate funds for payroll
  2. Enables you to offer payment terms
  3. Line adapts to growing revenues
  4. Can be deployed quickly
  5. Has simple qualification criteria
  6. Available to small businesses and startups

Simple qualification criteria

Our factoring lines have simple qualification requirements. They are intended for small and midsize companies. Requirements include the following:

  1. Startup or established agency
  2. Good client roster
  3. Unencumbered invoices (e.g., PPSA or Hypothèque)
  4. No serious tax/legal issues

Typical clients

We can work with any staffing agency that invoices commercial clients. We have worked with staffing clients in most fields, including:

Partner with the right factoring company

Working with the right factoring company is important to the success of your agency. Interview factoring companies carefully during your due diligence process, and consider asking the following questions:

1. How long have they been in business?

The financing field is competitive, and you have several factoring companies to choose from. Your staffing agency is usually better off working with a factor that has been in business for a while. Longevity in the industry ensures that the factor knows how to manage its portfolio.

2. What is the average size of their client?

Ask your prospective factoring partner about the size of their typical client. You usually get better service if you work with a company whose client base is similar in size to your company.

3. Do they work in the staffing industry?

Most factoring companies are familiar and comfortable with the staffing industry. Finding one that specializes in the industry should not be a problem.

4. Do they offer flexible terms?

Work with a factoring company that offers flexible terms. These include the advance, rate, and contract length. Ideally, you should work with a company that offers short-term contracts. This approach ensures your factoring plan won’t outlive its usefulness.

Essential reading

We want to help you make an educated decision and maintain a learning centre with information about our products. Popular articles include:

1. How Does Factoring Work?
2. Is Invoice Factoring Right for my Company?
3. The Factoring Due Diligence Process
4. How to Offer Net-30 Terms

Service availability

We offer factoring services to temporary staffing agencies in provinces across Canada. For specific information, visit: