Turn Unpaid Invoices into Working Capital
Contractors are placed and start work. Costs begin accruing immediately.
Payroll runs weekly. You have now funded four cycles out of pocket.
Invoices are issued for the month’s billable hours. The payment clock starts here.
Client settles. By now you have funded eight or more payroll runs against it.
Yes, and it usually should be. Facilities are commonly structured so that funding against invoiced hours lands ahead of your payroll date. The point is to remove payroll as a constraint, so the timing matters as much as the advance rate.
It works well. Frequent, timesheet-backed billing produces a steady stream of verifiable receivables, which underwrites more cleanly than lumpy project billing. Clean timesheet approval records are the main thing that speeds diligence.
Concentration is an underwriting factor, but MSP and VMS programs are well understood by funding providers and generally viewed as reliable payers. It typically affects advance rates rather than eligibility, and credit insurance can be considered to reduce single-payer exposure.
Not necessarily. Depending on the structure, you may be able to finance selected clients or a subset of your invoices rather than the entire ledger. We will cover which providers allow that flexibility.
It depends on the structure. Some facilities are notification-based, where the funding provider is disclosed, and others can be structured confidentially. Given that many staffing clients already work with factored vendors, notification is often less sensitive here than in other industries.
