Five ways to fund a staffing agency. Here’s which one fits.
Timecard Capital offers five funding products to staffing and recruiting agencies: invoice factoring (up to $5M, up to 90% advanced in 24 hours, no minimum FICO), working capital ($10K–$2M, 24 hours, no minimum FICO), a line of credit ($25K–$500K, 600+), term loans ($50K–$5M, 650+), and SBA 7(a) ($50K–$5M, 680+). The fastest money costs the most. The cheapest money takes the longest. Below is the whole trade-off in one table, with no form in the way.
What does each staffing funding product cost in time and credit?
| Product | Amount | Term | Speed | Min FICO | Min time in business | Minimum | Who underwrites |
|---|---|---|---|---|---|---|---|
| Invoice factoring | Up to $5M facility | Per invoice, 30–90 days | 3–5 days to open, 24 hours per invoice after | None | 3 months | $20,000 in open invoices | Timecard, in-house |
| Working capital advance | $10K – $2M | 3–18 months | 24 hours | None | 6 months | $15,000/mo deposits | Timecard, in-house |
| Line of credit | $25K – $500K | Revolving, 6–24 month draws | 1–3 business days | 600 | 12 months | $25,000/mo deposits | Timecard, in-house |
| Term loan | $50K – $5M | 6–60 months | 3–7 business days | 650 | 24 months | $40,000/mo deposits | Timecard in-house to $500K; bank partners above |
| SBA 7(a) / SBA Express | $50K – $5M | Up to 10 years working capital, 25 years real estate | SBA Express 10–21 days; 7(a) 30–45 days | 680 | 24 months | — | SBA-preferred bank partners, packaged by Timecard |
Timecard Capital underwrites and funds invoice factoring, working capital and lines of credit in-house. SBA 7(a), SBA Express and term loans above $500,000 are packaged by Timecard and placed with bank and SBA-preferred lending partners. See disclosures.
Invoice factoring
In‑houseNo minimum FICO — your clients’ credit is underwritten. 3 months in business, $20,000 in open invoices. Up to 90% advanced within 24 hours.
Invoice factoring →Working capital
In‑houseNo minimum FICO, 6 months in business, $15,000/month in deposits. 3–18 months, fixed daily or weekly ACH.
Working capital →Line of credit
In‑house600+ FICO, 12 months in business, $25,000/month. Pay only on what you draw. No cost on an unused line.
Line of credit →Term loan
Bank partners650+ FICO, 24 months in business, $40,000/month. 6–60 months, fully amortizing. In-house to $500,000.
Term loans →SBA 7(a) & Express
SBA partners680+ FICO, 24 months in business, 10% down. Up to 10 years working capital, 25 years real estate.
SBA loans →Which product should I use for what I’m doing?
Find the row that matches the job in front of you.
| What you’re doing | Best product | Why |
|---|---|---|
| Making weekly payroll while clients pay on net-30 to net-90 | Invoice factoring | Funds the exact gap, grows with billing, no FICO minimum. |
| Just won a 40-person contract and need to carry the first two payrolls | Invoice factoring, or a line of credit for the onboarding costs | The invoices fund themselves once they exist; the screens and PPE come first. |
| Hiring recruiters ahead of revenue | Working capital | Not tied to an invoice; speed matters more than cost. |
| A workers’ comp deposit or payroll-tax bill due this week | Working capital | Funded in 24 hours, same day before 11:00 AM ET. |
| Seasonal ramp every year — tax season, summer events, holiday warehouse | Line of credit | Draw, bill, repay, draw again next year. No cost unused. |
| Buying another agency or its client book | Term loan, or SBA 7(a) if you have 45 days | SBA is the cheapest capital an agency can get if you can wait. |
| Buying out a partner | Term loan or SBA 7(a) | SBA explicitly allows partner buyouts. |
| Three advances you can’t carry | Term loan consolidation | One payment, longer term. Call before taking a fourth position. |
| Opening a second office | Term loan or SBA 7(a) | Match the term to the time the office takes to carry itself. |
How fast does each one actually move?
- 24 hoursWorking capital advance, or each invoice once a facility is open
- 1–3 daysLine of credit
- 3–5 daysFactoring facility to open
- 3–7 daysTerm loan decision
- 10–21 daysSBA Express
- 30–45 daysStandard SBA 7(a)
Timelines describe typical outcomes on complete files during business days, Monday to Friday, 9:00 AM to 7:00 PM ET. Holidays, incomplete files and third-party response times extend any timeline.
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.
Choosing between them.
Which funding product should a staffing agency use first?
Factoring, for most agencies. It funds the payroll gap directly, has no minimum credit score, grows with your billing and is usually the cheapest money available to an agency under two years old. Add working capital or a line for costs that aren’t tied to an invoice, and a term loan or SBA for an acquisition.
Can I have factoring and a working capital advance at the same time?
Yes. They are complementary. Factoring is repaid out of specific invoices; a working capital advance is a fixed daily or weekly ACH. We structure both so the debits sit after your typical client payment days.
What is the cheapest option?
SBA 7(a), if you have 680+ credit, two years of returns, 10% down and 30 to 45 days. For an agency that needs money this week, factoring is normally the lowest cost because the fee only runs for the days the invoice is outstanding.
Can I switch products later?
Yes. A common path is factoring in year one, a line of credit once there are 12 months of history and 600+ credit, and a term loan or SBA for the first acquisition. Tell us where you are going and we will sequence it.
One application. The underwriter places the file.
If you’re not sure which product fits, apply anyway. We’ll tell you which one we’d start with and why.