Factoring for Staffing Companies
Wednesday 12th March 2025
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In this article:
- What is factoring for staffing companies?
- How does invoice factoring work for staffing companies?
- Why choose invoice factoring for staffing companies with Novuna Business Cash Flow?
What is factoring for staffing companies?
Factoring allows staffing companies to convert outstanding invoices into working capital. Rather than waiting for clients to pay, businesses can sell their invoices to a finance provider like Novuna Business Cash Flow and receive up to 90% of the invoice value within 24 hours. Once the client settles the invoice, the remaining balance is released minus a small fee.
This approach ensures staffing firms can meet payroll commitments, invest in growth, and take on new contracts without cash flow worries.
How does invoice factoring work for staffing companies?
The process is simple and designed to keep your business running smoothly:
Provide staffing services – Place candidates or contractors with your clients and generate an invoice.
Submit the invoice to Novuna Business Cash Flow – Instead of waiting for client payments, send your invoice to us.
Receive an advance on your invoice – We release up to 90% of the invoice value within 24 hours, giving you immediate access to cash.
Client pays on agreed terms – Your client pays Novuna Business Cash Flow directly on their usual payment terms.
Receive the remaining balance – Once your client settles the invoice, we transfer the remaining funds minus a transparent factoring fee.
Why choose invoice factoring for staffing companies with Novuna Business Cash Flow?
Keep cash flow steady - Ensure you have the funds to pay employees and contractors on time, even when clients take weeks or months to settle invoices.
Focus on growth, not collections - We handle invoice processing and collections, so you can spend more time placing candidates and securing new contracts.
Scalable to your business needs - Factoring grows with you - whether you’re a small recruitment agency or a large staffing firm, funding availability increases as you issue more invoices.
Credit approval based on clients, not you - Approval is based on your clients’ creditworthiness rather than your own, making factoring a suitable solution for expanding businesses.
No hidden fees - We offer transparent pricing, so you always know what to expect with no surprises.
Is invoice factoring right for your staffing business?
If slow client payments are affecting your ability to meet payroll and grow your business, invoice factoring could be the perfect solution. With fast access to cash, no additional debt, and a simple process, Novuna Business Cash Flow helps staffing firms stay financially secure and competitive.
