How we make this list: we compare pricing pages, product documentation and public user reviews. Ratings come from G2, Capterra or Trustpilot, with the date we checked them.
Key takeaways
- Staffing agencies pay workers weekly but clients pay in 30 to 90 days, and factoring bridges that gap by advancing cash against unpaid invoices.
- Advance rates for staffing factors run from about 90 percent to 97 percent of invoice value, with the balance released when the client pays.
- Fees typically run from about 0.5 percent to 4 percent per invoice, depending on volume, client credit, and whether the deal is recourse or non-recourse.
- Recourse factoring means you repay the advance if the client does not pay, while non-recourse factoring shifts that risk to the factor for approved clients.
- Factoring is not a loan and not free money: compare total fees, contract length, and minimums before signing, and get advice for large commitments.
Quick comparison
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The best factoring companies for staffing agencies
Starting price1% to 4% per invoice
Free planNo
American Funding Solutions, known as AFS, focuses on staffing firms including healthcare, private security, light industrial, and startup agencies, with advance rates up to 90 percent and fees from 1 percent to 4 percent per invoice. Its standout features for new firms are no minimums and same-day approvals, which matter when a startup lands its first large client and needs payroll cash immediately. Free client credit checks help small agencies vet new clients before accepting work, reducing the risk of a client that pays late or not at all.
The limits are scale and fee variation: fees depend on client credit and volume, so a startup with weaker clients pays more, and AFS is smaller than national factors such as eCapital. For new and small staffing firms, though, the combination of no minimums, fast approval, and staffing-specific knowledge makes AFS a strong first factoring partner, especially in healthcare and light industrial staffing.
What we like- No minimums
- Same-day approvals
- Free client credit checks
- Staffing expertise
Watch out for- Fees vary by client credit
- Smaller scale than eCapital
- Terms depend on volume
Starting price0.5% to 3% per invoice
Free planNo
altLINE, the factoring division of The Southern Bank, offers staffing factoring with advance rates up to 90 percent and fees from 0.5 percent to 3 percent per invoice, among the lowest fee ranges on this list. Its dedicated staffing division understands temp and healthcare payroll cycles, and it offers non-recourse options, where the factor absorbs the loss if an approved client fails to pay, rather than requiring the agency to repay the advance. Bank backing adds stability that non-bank factors cannot always match.
Bank underwriting can be slower than independent factors, so altLINE may not approve as fast as AFS same-day process, and minimums may apply on some programs. For temp and healthcare agencies that value low fees and non-recourse protection, altLINE is worth the extra underwriting time, and its bank stability matters for agencies planning a long-term factoring relationship.
What we like- Non-recourse options
- Dedicated staffing division
- Bank-backed stability
Watch out for- Bank underwriting can be slower
- Fees vary by deal
- Minimums may apply on some programs
Starting price1% to 4% per invoice
Free planNo
RTS Financial is known for transportation factoring, but it also serves staffing, distribution, oilfield services, and government contracting, with advance rates up to 97 percent, the highest on this list, and fees from 1 percent to 4 percent per invoice. For staffing companies, RTS offers same-day funding on approved timesheets rather than traditional invoices, which aligns the advance with the actual payroll cycle instead of the invoice date. It charges no ACH, wire, or invoice processing fees, which makes total cost comparison straightforward.
RTS transport heritage means its staffing sweet spot is industrial and transportation-based staffing, and rates vary by industry, client credit, and monthly volume, with some accounts starting at 1.69 percent. For industrial staffing firms that need high advances and fast funding tied to timesheets, RTS is a strong pick. For office or healthcare staffing, a staffing-specific factor such as AFS or altLINE may fit better.
What we like- Advance rates up to 97 percent
- Same-day deposits
- No ACH, wire, or invoice fees
Watch out for- Transport focus may suit industrial staffing best
- Rates from 1.69 percent on some accounts
- Terms vary by industry
Starting price1% to 3% per invoice
Free planNo
eCapital is a large factoring company with a staffing focus, offering advance rates up to 90 percent and fees from 1 percent to 3 percent per invoice, with custom terms for agencies managing high invoice volumes. Its 24/7 online portal lets agencies track invoices, advances, and balances at any hour, which matters for large firms with payroll deadlines across time zones. High-volume capacity means eCapital can fund growth that smaller factors cannot support.
The trade-off is fit for small firms: eCapital custom pricing rewards volume, so a small agency may pay more or receive less attention than at a small-firm specialist. For large agencies managing many clients and high monthly invoice totals, eCapital scale, portal, and custom terms make it the strongest pick, and its staffing experience covers the payroll timing issues that general factors miss.
What we like- Custom terms for large agencies
- 24/7 online portal
- High-volume capacity
Watch out for- Less suited to very small firms
- Custom pricing needs negotiation
- Scale means less personal service
Starting price1.5% to 3.5% per invoice
Free planNo
TCI Business Capital, also known as Scale Funding, serves new and established temp agencies with advance rates up to 95 percent and fees from 1.5 percent to 3.5 percent per invoice. Its payroll integration tools connect factoring advances to payroll processing, which helps agencies time advances to paydays rather than to invoice dates. Risk-mitigation support, including client credit checks and collection help, suits new agencies that have not yet learned which clients pay reliably.
Fees at entry run higher than altLINE lowest rates, and TCI mid-sized scale means less capacity than eCapital for very large agencies. For new and growing temp agencies, though, the payroll integration and risk support address the two problems that sink young firms: mistimed cash and bad clients. TCI is a balanced pick for agencies past the startup stage but not yet at national scale.
What we like- Payroll integration tools
- Risk-mitigation support
- Advance rates up to 95 percent
Watch out for- Fees higher than altLINE at entry
- Mid-sized scale
- Terms vary by client quality
Starting price1% to 3% per invoice
Free planNo
Viva Capital Funding serves staffing and other industries with advance rates up to 90 percent and fees from 1 percent to 3 percent per invoice, with same-day payments once an account is set up. Its strengths are bilingual support, flexible contract options, and customer service that earns strong reviews, including praise for clear communication and fast phone response. Agencies can choose which invoices to factor, rather than factoring every invoice, which gives control over fees.
Advance rates top out at 90 percent, below RTS and TCI, and fees vary by industry, so some sectors pay more. For multisector staffing firms that value service and flexibility, especially firms with Spanish-speaking staff or clients, Viva Capital is a strong pick. Its contract flexibility also suits agencies that want to test factoring without a long lock-in.
What we like- Bilingual support
- Flexible contract options
- Same-day payments once set up
- Strong service reviews
Watch out for- Advance rates up to 90 percent
- Fees vary by industry
- Smaller scale than eCapital
Starting price1.5% to 4% per invoice
Free planNo
Transwest Capital serves small to mid-sized staffing agencies with advance rates up to 92 percent and fees from 1.5 percent to 4 percent per invoice, plus seasonal funding flexibility for agencies whose volume swings with the year. Dedicated account representatives give smaller agencies a single contact who knows their clients and payroll cycle, which larger factors often cannot match. Seasonal flexibility matters for staffing firms in retail, hospitality, or agriculture, where demand spikes for months then falls.
Fees run to 4 percent at the top end, higher than altLINE or 1st Commercial Credit, and Transwest smaller scale means less capacity for very large agencies. For small to mid-sized firms with seasonal volume, the dedicated service and flexible terms outweigh the higher top-end fee, and the 92 percent advance rate sits above most rivals.
What we like- Seasonal funding flexibility
- Dedicated account representatives
- Advance rates up to 92 percent
Watch out for- Fees up to 4 percent
- Smaller factor
- Terms vary by season and volume
Starting price0.69% to 2.5% per invoice
Free planNo
1st Commercial Credit offers staffing factoring with advance rates up to 95 percent and fees from 0.69 percent to 2.5 percent per invoice, the lowest fee range on this list. Its tailored staffing programs cover high-volume placement firms, with terms adjusted to placement volume, client credit, and invoice quality. For a high-volume agency with strong clients, the fee saving against a 3 to 4 percent factor is significant across a year of invoices.
Low rates depend on volume and client quality, so smaller or newer agencies may not qualify for the bottom of the range, and 1st Commercial Credit is a smaller brand than eCapital. For high-volume firms that can meet its terms, it is the cheapest staffing factor on this list, and the 95 percent advance rate leaves little cash tied up while clients pay. Smaller firms should compare its actual quote against AFS or Viva before assuming the lowest rate applies.
What we like- Lowest fee range on this list
- Advance rates up to 95 percent
- Tailored staffing programs
Watch out for- Low rates depend on volume and client quality
- Smaller brand than eCapital
- Terms vary by deal
How we chose
We compared factoring companies that specialize in staffing, weighting advance rates, fee ranges, recourse terms, payroll timing, and staffing niche fit. We favored companies with staffing-specific programs over general factors, since payroll timing and client credit checks matter more in staffing than in other industries. Fees and advance rates come from vendor pages and current guides, and they vary by client credit, volume, and industry, so treat every figure as a range to verify with a quote, not as a guaranteed rate. This article is general information only, not financial advice. We did not test any company hands-on, and we did not list general factors without staffing programs.
Buying guide
Start from your payroll cycle. If you pay weekly and clients pay in 60 days, you need a factor that funds on timesheets or quickly after invoicing, not one that waits for invoice approval. Compare total cost, not just the headline fee: ask about ACH fees, wire fees, invoice processing fees, monthly minimums, and contract length, since a low fee with high minimums can cost more than a higher fee with no minimums. Ask whether the deal is recourse or non-recourse, and which clients qualify for non-recourse protection, since that decides who bears the loss if a client fails to pay.
Before signing, get quotes from at least three factors and check four things: the advance rate, the full fee schedule, the contract term and termination fee, and whether you must factor all invoices or can choose. Read the contract for personal guarantees and for what happens if a client disputes an invoice. Factoring can fund growth well, but a long contract with high minimums can trap a firm whose volume falls, so prefer flexible terms for your first factoring relationship and negotiate harder once you have volume history.
Frequently asked questions
How does staffing factoring work?
You sell unpaid client invoices to a factor, which advances most of the value, usually 90 to 97 percent, within a day. When the client pays, the factor releases the balance minus its fee. You pay workers on time while waiting for client payment, which is the core timing problem factoring solves.
What is the difference between recourse and non-recourse factoring?
In recourse factoring, you repay the advance if the client does not pay, so you keep the credit risk. In non-recourse factoring, the factor absorbs the loss for approved clients that fail to pay, but non-recourse usually costs more and covers only clients the factor approves in advance.
How much does staffing factoring cost?
Fees typically run from about 0.5 percent to 4 percent per invoice, depending on volume, client credit, and recourse terms. Total cost also includes any ACH, wire, processing, or minimum fees, so compare the full schedule rather than the headline rate alone.
Do I have to factor all my invoices?
It depends on the factor. Some factors require all invoices, while others, such as Viva Capital, let you choose which invoices to factor. Selective factoring costs less when only some clients pay slowly, but factors may charge higher fees for selective deals.
Is factoring a loan?
No. Factoring is the sale of invoices at a discount, not a loan, so it does not create debt on your balance sheet in the same way. It does create obligations under the factoring contract, including recourse repayment and contract terms, so read the agreement carefully.
Can a startup staffing agency get factoring?
Yes. Factors such as American Funding Solutions offer no minimums and same-day approvals for startups, and they check client credit rather than only your business history. Expect higher fees at first, since new firms carry more risk, and fees usually fall as volume and payment history grow.
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Is your product missing or out of date?
We review this list regularly. Vendors can request a listing, send updated pricing or ask about featured placement.
Shihab Mia · Founder, Rankite
Shihab has 5+ years in B2B and SaaS SEO. He writes Rankite's software buying guides from pricing pages, documentation and public user reviews. More about Shihab.
American Funding Solutions
altLINE
RTS Financial
eCapital
TCI Business Capital
Viva Capital Funding
Transwest Capital
1st Commercial Credit