Staffing
Payroll Now, Paid in 45 Days: Fixing the Staffing Cash Gap
Staffing firms fund the payroll-to-collection gap with a line sized to a full pay cycle, plus receivables support where clients pay slowly. Client concentration and margins decide how deep the facility can go.
You pay employees on a weekly rhythm and fund payroll taxes with them, while clients settle on 30 to 60 day terms. The gap is not a one-time problem. It recurs every cycle, so it deserves its own facility.
Sizing the line
- Add one full payroll run plus payroll taxes
- Add the slowest client payment window
- Hold a buffer for new contracts and ramp-up
- Review quarterly as the client mix changes
| Weekly payroll | Line of credit, drawn and repaid each cycle |
| Slow client payments | Receivables financing where appropriate |
| Expansion to new contracts | Line increase supported by contracts |
| Concentration | Diversification strengthens terms |
Contracts and margins decide the ceiling. The cleaner the client mix, the deeper the facility.
Frequently asked questions
Is receivables financing available for staffing?
Common, and structured around verified time sheets and client credit.
Can a new agency with a first contract qualify?
Possible. Contracts and experienced leadership drive the decision.