Staffing Agencies

Staffing Agency Financing

Staffing agencies finance weekly payroll for placed workers while clients pay invoices in 30 to 60 days. Sagamore is a commercial loan broker that matches established staffing firms in all 50 states with lenders for invoice factoring, AR financing and lines of credit, so payroll goes out on time as the agency adds clients.

Written by Jordan Levy, Founder & CEO · Last updated November 4, 2026

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How do staffing agencies meet weekly payroll?

Who it's for: Light industrial, clerical, healthcare and IT staffing firms that pay temporary and contract workers weekly.
The problem: Workers are paid every Friday, along with payroll taxes and workers' comp, but clients pay net-30 to net-60 after timesheets are approved. Each new client or larger order adds weeks of payroll before its first payment arrives, so fast growth is when cash runs shortest.
What fits: A line of credit covers payroll between client payments for agencies with steady billings. When growth outpaces the line, factoring or AR financing ties funding directly to billed hours, so it grows as placements do.

Products that fit

How does invoice factoring work for staffing agencies?

Who it's for: Agencies billing creditworthy clients, such as manufacturers, hospitals, logistics companies and public agencies, on 30-to-60-day terms.
The problem: Payroll is due before the client pays, and one large client paying late can put a week's payroll at risk. Banks often want more history or collateral than a fast-growing agency has.
What fits: Factoring advances most of each invoice within days of billing, and approval leans on your clients' credit rather than your balance sheet. AR financing does the same as a loan against receivables, with your agency keeping control of collections. Either can be set up to fund every payroll cycle.

Products that fit

Eligibility

What do you need to qualify?

Sagamore is a broker, not a lender. One application is matched with lenders across all 50 states, and every program starts from the same minimums. We work with established businesses only, so startups are not eligible.

Credit score: 600+
Time in business: 1+ year
Annual revenue: $400K+

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Frequently Asked Questions

Common questions about staffing agency financing

You bill the client as usual and sell the invoice to a factor, which advances most of its value, usually within days. When the client pays, the factor releases the balance minus its fee. Approval depends mainly on your clients' credit.

A line of credit usually costs less when billings are steady and the limit covers peak payroll. Factoring fits faster growth, because funding scales with billed hours and leans on your clients' credit rather than your own balance sheet.

With AR financing, yes: you borrow against receivables and your team keeps collecting. With factoring, clients usually pay the factor directly.

An accounts receivable aging report, a client list, business bank statements and proof that payroll taxes are current. The agency needs at least a year in business, a 600+ credit score and $400K+ in annual revenue.

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