Quick answer: Staffing agencies most often use a line of credit or invoice factoring to make weekly payroll while clients pay on 30- to 60-day terms, and a term loan to open new offices, add recruiters or take on a large new client. Established agencies with steady deposits can often be funded within days by a non-bank lender.
Why staffing agencies need financing
Staffing agencies pay workers every week but usually wait a month or more to be paid by clients. The faster you grow, the bigger that payroll gap becomes, which is why growing agencies often run short on cash even when they are profitable.
Common uses for staffing agency financing
- Weekly payroll while waiting on client payments
- Taking on a large new client
- Hiring recruiters and sales staff
- Opening new branch offices
- Workers’ compensation and insurance deposits
- Recruiting software and job-board advertising
Financing options for staffing agencies compared
| Option | Best for | Speed |
|---|---|---|
| Line of credit | Weekly payroll gaps | 1–3 days |
| Invoice factoring | Converting client invoices to cash | A few days |
| Term loan | New offices, recruiters, expansion | Same day to 2 days |
| SBA loan | Long-term growth at lower rates | Several weeks |
What lenders look at for staffing agencies
Lenders review monthly deposits, client concentration, payment terms, payroll size and time in business. A diverse client base with reliable payment history is a strong signal.
What you need to qualify with Brookestone Funding
- 2+ years in business
- $30,000+ in monthly revenue
- 600+ credit score
- Recent business bank statements
Qualified staffing agencies can borrow $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8%. Complete applications submitted early in the day can be funded the same day.
Tips before you apply
- Have your client list and payment terms ready.
- Know your gross margin per placement.
- Plan financing before signing a large new client.
- Compare offers on the total amount you’ll repay, not just the rate, and size the payment to your slowest month.
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Frequently Asked Questions
Can a staffing agency get a business loan with a 600 credit score?
Yes. Brookestone Funding works with staffing agencies that have a 600+ credit score, 2+ years in business and $30,000+ in monthly revenue.
How fast can a staffing agency get funded?
Qualified staffing agencies can often be funded the same day with a business term loan, or within 1–3 days with a line of credit, once the application and recent bank statements are complete.
How do staffing agencies make payroll before clients pay?
Most use a line of credit, invoice factoring or payroll funding to cover weekly payroll until client invoices are paid.
Can a staffing agency get a loan to take on a big new client?
Yes. A term loan or line of credit can cover the extra payroll until the new client starts paying.
Ready to see what your staffing agency qualifies for? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. Apply in minutes, see our business loan options, or call 212-258-0602.
