Payroll Funding for Staffing Agencies and Businesses
Convert outstanding invoices into same-day cash. Your team gets paid on time, every pay period.
What Is Payroll Funding?
Payroll funding is a form of invoice factoring designed for businesses that need to meet payroll obligations before clients settle their invoices. Instead of waiting for client payments, you advance against your outstanding invoices and receive funds within 24 hours.
It is not a loan. No debt added to your balance sheet, no collateral required, no credit score impact. You convert what your clients already owe you into immediate working capital.
How Payroll Funding Works
Submit Your Invoices
After billing your client for placements or services performed, submit your outstanding invoices to Meritus Capital.
Receive Your Payroll Advance
We advance up to 95% of the invoice value upfront, typically within 24 hours. Use the funds to cover weekly payroll, pay employees on schedule, and keep operations running smoothly.
We Collect From Your Clients
Meritus Capital handles collections directly with your client. When the client pays, we release the remaining balance to you, minus a 1-3% service fee.
Payroll Funding for Staffing Agencies
Staffing companies have one of the most demanding cash-flow structures in business. You cover the full cost of your workforce every week, while clients operate on 30 to 60-day payment terms. That gap between making payroll and collecting from clients limits how many contracts you can take on and how fast your staffing business can grow.
Meritus Capital has worked with staffing firms across North America for over 25 years. Our payroll funding solution is built specifically for this cash flow challenge, advancing funds against accounts receivable so staffing agencies can:
What Does Payroll Funding Cost?
Wondering about payroll funding cost? Meritus Capital charges 1 to 3% of the invoice value, depending on invoice volume, client payment terms, and the industry you operate in. On a $50,000 invoice, that works out to $500 to $1,500. Payroll financing is transactional by design, meaning you do not incur debt.
$500 to $1,500
On a $50,000 invoice
What to Watch for When Comparing Payroll Funding Companies
Who Qualifies for Payroll Funding?
Payroll funding is available to staffing companies and other businesses that:
Approval is based on your clients' creditworthiness, not your agency's financial history or personal credit score. That makes payroll funding accessible to newer staffing firms, mid-sized staffing firms scaling quickly, and recruitment firms that do not qualify for traditional bank loans.
Industries We Serve with Payroll Funding
Staffing
Payroll is due before clients settle invoices.
Manufacturing
Labor and materials paid upfront; receivables arrive 30 to 90 days later.
Transportation
Driver wages and fuel costs are immediate. Freight bills are not.
Startups
No years-in-business requirement. Approval based on your clients' credit.
See startup solutions →Why Choose Meritus Capital as Your Payroll Funding Company
Fast Funding
Payroll advances processed within 24 hours of invoice submission, timed to your payroll cycle.
Dedicated Support
One account manager who knows your industry and works around your payroll calendar.
Scales With You
Your funding line grows as your invoice volume grows. No re-application needed.
Transaction-based
Sell invoices as needed. No debt incurred.
Frequently Asked Questions About Staffing Factoring
What is payroll funding for staffing agencies?
Payroll funding is a financing solution in which a staffing agency sells its outstanding client invoices to a payroll funding company for an immediate cash advance. The advance covers payroll obligations before clients have paid. It is not a loan and does not add debt to your balance sheet.
What is the difference between payroll funding and payroll factoring?
The terms are used interchangeably in the staffing industry. Both refer to advancing funds against outstanding invoices to meet payroll obligations. Payroll factoring simply emphasizes that the mechanism is invoice factoring applied to a payroll timing need.
What is payroll financing?
Payroll financing is a broad term for any funding solution that helps businesses cover payroll before client payments arrive. For staffing companies, it most commonly refers to payroll funding through a factoring company, where outstanding invoices are advanced against, rather than waiting on extended payment terms.
How does payroll funding work?
You submit invoices for completed placements to Meritus Capital. We advance up to 95% of the invoice value upfront, typically within 24 hours. We then collect from your client when the invoice is due. Once the client pays, we release the remaining balance to you minus our service fee.
Do I need good credit to qualify?
Meritus Capital's qualification process focuses on your clients' creditworthiness, not your personal credit score or your agency's financial statements. This makes payroll funding accessible to newer agencies and businesses that do not qualify for traditional bank loans.
What does payroll funding cost?
Service fees range from 1% to 3% of the invoice value. Rates depend on invoice volume, client payment terms, and industry.
Ready to Meet Payroll Without the Stress?
Join hundreds of staffing companies and businesses across North America that rely on Meritus Capital to fund payroll on time, every pay period.
Questions? Call 877-648-3709
More questions? We're here to help.
Send us a note and our team will reach out to you or simply call us at 877-648-3709