Fund this week’s invoices. Make this week’s payroll.
Timecard Capital factors staffing and recruiting receivables in facilities up to $5,000,000, advancing up to 90% of an approved invoice within 24 hours. There is no minimum credit score, because the credit decision is about the client who owes you — a hospital, a distribution center, a manufacturer, a school district — not about you. 3 months in business and $20,000 in open invoices opens a facility in 3 to 5 business days.
What are the criteria?
Invoice factoring — criteria
- Facility size
- Up to $5,000,000
- Advance rate
- Up to 90% of the approved invoice face value
- Speed
- 3 – 5 business days to open a facility; 24 hours per invoice batch once open
- Minimum credit score
- None — your clients’ credit is what’s underwritten
- Minimum time in business
- 3 months
- Minimum receivables
- $20,000 in open, invoiced B2B receivables
- Invoice age accepted
- Current through 90 days
- Recourse
- Recourse and non-recourse facilities both available
- Documents
- Application, A/R aging report, client list, sample invoices or signed timesheets, 3 months of business bank statements
- Eligible
- Invoices to business, institutional and government clients for placed workers, contract staff and completed direct-hire placements past the guarantee period
- Not eligible
- Unbilled hours, contingent placement fees, consumer receivables, invoices already pledged to another lender
- Underwritten
- In-house by Timecard Capital
Who is staffing factoring actually for?
Any agency that pays workers before its clients pay it. That is almost every agency, but the gap is widest for these.
- Light industrial and warehouse agencies running weekly payroll for hundreds of hours against net-45 and net-60 distribution clients.
- Nurse and allied health agencies billing hospital systems and facilities on net-60 to net-90, often through a vendor-management system.
- IT and engineering contract firms with a handful of large clients, high bill rates and monthly invoicing.
- New agencies that just won their first real contract and have no balance sheet to borrow against yet.
- Agencies in a growth spurt where payroll doubled in a quarter and the bank line didn’t.
- Direct-hire firms with a contract division that want to factor the contract side and leave placement fees alone.
If you place people and are paid a one-time fee at hire with no ongoing invoicing, the product you want is working capital or a line of credit. Contingent placement fees cannot be factored until the guarantee period has run.
How does staffing factoring work, step by step?
- Your people work the week and submit timesheets. The client approves them as it always has, in whatever system it uses.
- You invoice the client and send us a copy. Once the facility is open, you submit each week’s batch of invoices with the approved timesheets. There is no re-application per invoice.
- Up to 90% is advanced within 24 hours. The advance lands in your operating account in time for payroll.
- Your client pays on its normal terms. The remaining reserve, less the fee for the days the invoice was outstanding, is released to you.
A facility opens in 3 to 5 business days. After that it runs on your invoicing rhythm. Many agencies run a facility alongside working capital for the costs that aren’t tied to an invoice — recruiters, a new office, a workers’ comp deposit. See how payroll funding works for the full walk-through.
What does it cost to factor a staffing invoice?
A light industrial agency invoices a distribution client $60,000 for two weeks of placed workers on net-45 terms. We advance 90% within 24 hours of invoice approval, and release the rest, less the fee, when the client pays.
Illustrative only. Your actual amount, cost and term are set by underwriting your file. Nothing on this page is an offer.
Representative invoice — $60,000 on net-45
- Invoice
- $60,000
- Advance (90%), within 24 hours
- $54,000
- Fee
- 2.5% per 30 days — illustrative
- Fee at 45 days
- $2,250
- Released when the client pays
- $3,750 ($6,000 reserve less the fee)
- Status
- An illustration, not an offer
What a staffing agency needs to qualify.
Every number below is a real criterion. Factoring is the product most agencies start with, so its minimums come first. If you clear these, apply. If you don’t, call us and we’ll tell you what would change it.
| Factoring minimums | 3 months in business, $20,000 in open B2B invoices, no minimum FICO. We underwrite your clients’ credit, not yours. |
|---|---|
| Factoring facility | Up to $5,000,000. Up to 90% of each approved invoice advanced within 24 hours; the balance, less the fee, released when your client pays. |
| Minimum monthly revenue | $15,000 in business bank deposits for working capital, a line of credit, term loans and SBA. |
| Minimum time in business | 6 months for working capital and other products. 3 months for factoring. |
| Minimum credit score | None for factoring or working capital. 600+ for a line of credit. 650+ for a term loan. 680+ for SBA. |
| Funding range | $10,000 to $2,000,000 for working capital. $25,000 to $500,000 for a line of credit. Up to $5,000,000 for term loans, SBA, and factoring facilities. |
| Time to a real offer | About 4 business hours on a complete file. |
| Time to funding | 24 hours. Same day if a clean file is signed before 11:00 AM ET. Once a factoring facility is open, each week’s invoices fund within 24 hours. |
| Documents required | Application plus your 3 most recent months of business bank statements (4 months if your placements are seasonal). For factoring, add your A/R aging, client list and sample invoices or timesheets. |
| Contract length | 2 pages. |
| Repayment | Factoring: your client pays the invoice and the reserve is released to you. Working capital: fixed daily or weekly ACH from your operating account. No split funding. No holdback percentage. No lockbox on working capital. |
| Prepayment discount | Up to 30% off the remaining cost of funding when a working capital advance is paid off within the first 30, 60, or 90 days. |
| Whose credit counts | Your clients’, on factoring. A hospital system, a distribution center or a Fortune-size employer owing you money is the strength of the file. |
| Agency types approved | Light industrial and warehouse, manufacturing and skilled trades, nurse and travel nurse, allied and home health, IT and engineering, clerical and administrative, accounting and finance, event and food-service, construction labor, driver and logistics, security guard, janitorial, education and substitute, and direct-hire or executive search firms with a contract division. |
| Not required | Collateral for working capital. A business plan. Tax returns under $500,000. A minimum headcount on assignment. A specific payroll, timekeeping or VMS platform. |
| Open to | U.S. businesses with a U.S. business bank account. All 50 states. |
Four minutes. Three bank statements. No credit impact to apply.
Staffing factoring questions, answered.
How does invoice factoring work for a staffing agency?
You place workers, collect their timesheets, and invoice your client on its normal net terms. You send us the invoice and we advance up to 90% of its face value within 24 hours. When the client pays, we release the remaining balance less our fee. Each week’s batch of invoices is funded the same way, with no re-application.
Can a new staffing agency get factoring?
Yes. Timecard Capital opens factoring facilities for agencies with 3 months in business and $20,000 in open, invoiced B2B receivables. There is no minimum credit score, because the underwriting is on the clients who owe you. Read the full guide.
Do my clients know I am factoring?
On a notification facility, yes — the remit-to address on your invoice changes. In staffing this is routine; many large employers and vendor-management systems already pay a factor on behalf of their agencies. Non-notification facilities exist for larger accounts; ask when you apply and we will tell you which structure your receivables support.
What if my client pays late or doesn’t pay?
If a client pays late, the fee accrues for the extra days and is deducted from the reserve. On a recourse facility, an invoice that goes unpaid comes back to you and you repay the advance or substitute another invoice. On a non-recourse facility, Timecard Capital carries the credit risk of the client’s insolvency, which is priced accordingly. Both structures are available.
Can I factor only some of my clients?
Yes. You choose which clients and which invoices to submit. Many agencies factor their net-60 and net-90 accounts and leave the net-15 accounts alone.
What does it cost to factor a $60,000 staffing invoice?
On a $60,000 invoice on net-45, we advance $54,000 (90%) within 24 hours. At an illustrative 2.5% per 30 days, the fee for 45 days is $2,250, and the remaining $3,750 is released when your client pays. Your rate is set by your clients’ credit and your volume; this is an illustration, not an offer.
Can I factor timesheets that haven’t been invoiced yet?
No. We fund issued invoices backed by approved timesheets or a client-signed work order. Unbilled hours, placement fees that are still contingent on a guarantee period, and consumer receivables are not eligible.
Your invoices are good. The timing isn’t.
Facilities up to $5,000,000, up to 90% advanced within 24 hours of invoice approval, no minimum credit score. 3 months in business and $20,000 in open invoices to start.