Term loans for the acquisition, the buyout, and the way out of stacked advances.
Timecard Capital places staffing agency term loans from $50,000 to $5,000,000 over 6 to 60 months, with a 650 minimum FICO, 24 months in business, and $40,000 a month in deposits. Files up to $500,000 are underwritten in-house; above that we package the file and place it with our bank lending partners. Decision in 3 to 7 business days.
What are the criteria?
Term loan — criteria
- Amount
- $50,000 – $5,000,000
- Term
- 6 – 60 months
- Minimum credit score
- 650
- Minimum time in business
- 24 months
- Minimum monthly deposits
- $40,000
- Documents
- Application, 6 months of business bank statements, 2 years of business tax returns, YTD P&L and balance sheet, debt schedule, A/R aging
- Repayment
- Fixed monthly or bi-weekly ACH, fully amortizing
- Collateral
- UCC-1 blanket lien. Personal guarantee required.
- Prepayment
- No prepayment penalty on in-house files up to $500,000. Partner-placed files vary — disclosed in the term sheet.
- Decision
- 3 – 7 business days
- Path
- In-house to $500,000; placed with bank lending partners above
What jobs does a term loan do for a staffing firm?
Buying another agency or its client book
A retiring owner with twenty accounts and a bench of placed workers. Match the term to the life of the relationships you are buying — 36 to 60 months, not 9.
Term: 36 to 60 monthsA partner buyout
Common at the 5-to-10-year mark when one founder wants out and the operating partner doesn’t have the cash. SBA 7(a) explicitly allows this use too, and costs less if you can wait.
Term: 36 to 60 monthsConsolidating stacked advances
This is the one we get called about most. Three or four daily positions with overlapping debits will take a profitable agency down. One monthly payment over 36 months is almost always the fix.
Term: 24 to 48 monthsBuilding a new division
Adding a healthcare or IT desk to a light industrial shop: credentialing, compliance, senior recruiters and a year of carrying it before it bills at scale.
Term: 24 to 60 monthsAdvance or term loan — which one?
Same money, two very different shapes. The advance buys speed. The term loan buys a payment you can live with.
| Working capital advance | Term loan | |
|---|---|---|
| Amount | $10K – $2M | $50K – $5M |
| Speed | 24 hours | 3–7 business days |
| Minimum FICO | None | 650 |
| Time in business | 6 months | 24 months |
| Payment frequency | Daily or weekly | Monthly or bi-weekly |
| Cost | Highest of the five products | Mid-range |
| Paperwork | 3 bank statements | Statements, returns, P&L, debt schedule, A/R aging |
| Best when | You need it now | You can wait a week and want the lower payment |
Who underwrites a staffing agency term loan?
Up to $500,000 — in-house
Timecard Capital underwrites and funds these directly. You deal with the desk that makes the decision, and there is no prepayment penalty.
Decision in 3 to 7 business days on a complete file.
Above $500,000 — bank partners
We package the file — statements, returns, P&L, balance sheet, debt schedule, A/R aging — and place it with our bank lending partners. The partner is identified to you in writing before you sign.
Prepayment terms on partner-placed files vary and are disclosed in the term sheet.
What does a staffing agency term loan cost per month?
An agency with 4 years in business, a 680 FICO and $90,000 a month in deposits replaces three daily-debit advances with one monthly payment. At $250,000 it stays in-house, so there is no prepayment penalty.
Illustrative only. Your actual amount, cost and term are set by underwriting your file. Nothing on this page is an offer.
Representative file — $250,000 over 36 months
- Amount
- $250,000
- Term
- 36 months, fixed monthly
- Rate
- 14% APR — illustrative
- Monthly payment
- $8,544
- Total interest
- $57,599 over the full term
- Prepayment penalty
- None on in-house files up to $500,000
- 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.
Term loan questions, answered.
What credit score do I need for a staffing agency term loan?
650 or higher, with 24 months in business and $40,000 a month in deposits. Below that, working capital has no minimum score and factoring underwrites your clients rather than you.
Can I use a term loan to buy another staffing agency?
Yes. Acquiring an agency or its client book is one of the two most common term loan uses we see. Files up to $500,000 are underwritten in-house by Timecard Capital; above that we package the file and place it with bank lending partners. If you have 680+ credit and 30 to 45 days, SBA 7(a) will usually cost less.
Can I consolidate stacked advances into a term loan?
That is the use we get called about most. Three or four daily positions with overlapping debits will take a profitable agency down. A 36-month term loan at a single monthly payment is almost always the fix, and the earlier you call, the more room we have.
What does a $250,000 term loan cost per month?
At an illustrative 14% APR over 36 months, the monthly payment is $8,544 and total interest is $57,599 over the full term. At $250,000 the file stays in-house, so there is no prepayment penalty. An illustration, not an offer.
Who underwrites it?
Up to $500,000, Timecard Capital underwrites and funds the loan directly and there is no prepayment penalty. Above $500,000 we package the file and place it with bank lending partners; the partner is identified to you in writing before you sign, and prepayment terms are disclosed on the term sheet.
One monthly payment. One longer term.
$50,000 to $5,000,000, 650+ FICO, decision in 3 to 7 business days. No prepayment penalty in-house.