A staffing agency pays its workers every week and bills clients later. That gap grows with every new placement.
Apply Now →The staffing business model is simple: place a worker, pay the worker, bill the client with a markup. The trouble is the order. Payroll, payroll taxes and workers' costs go out on the regular pay day. The client invoice is sent and then paid after the client's own review and terms.
Dallas, a city of 1,304,379 people (2020 census) in a metro area of 8.5 million, hosts many employers that use staffing agencies for peak periods. Winning more placements is good for the agency and hard on cash, because each new worker adds to weekly payroll before revenue arrives.
Take an agency that has 20 placed workers and wins a contract for 20 more. Its weekly payroll doubles immediately, but its cash receipts from the new contract arrive only after the first invoices are paid. The agency has to float the extra payroll for the entire billing and payment cycle.
For illustration only, if 20 added workers cost $24,000 a week all in, and the first payment arrives five weeks after work starts, the agency needs to carry something like $120,000. The numbers are invented to show the arithmetic; they are not our terms or typical outcomes.
| Week | Payroll paid | Cash received from new contract |
|---|---|---|
| 1 | Yes | None yet |
| 2 | Yes | None yet |
| 3 | Yes | Invoice sent |
| 4 | Yes | Waiting on client review |
| 5 | Yes | First payment may arrive |
Agencies cannot control when a client pays, but they can control which clients they accept and on what terms. A client who pays slowly is effectively borrowing from the agency. Some agencies price that in, ask for shorter terms, or limit how many workers they place with slow payers.
Funding can cover the wait you have already accepted. It works best when the agency has chosen the terms deliberately, not when a client has simply drifted into paying late.
For related reading, see IT services, real estate offices, Dallas County and the Metroplex overview.
Payroll for the new workers starts right away, while the first client payments come after invoicing and review.
Quarterly wage reports and unemployment taxes are due by the last day of the month after quarter end, per the Texas Workforce Commission.
Yes. Small agencies and sole proprietors can apply, and the application takes about five minutes.
To the weeks of payroll you will carry before client payments arrive.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
