AmeriFactors funds staffing invoices through invoice factoring, underwritten primarily on your customers' credit, within 4 hours of invoice submission once your account is established, so weekly payroll need not wait on customer payments.
AmeriFactors Financial Group provides payroll funding and invoice factoring to staffing agencies across the United States, underwriting each invoice primarily on the creditworthiness of the business customer billed rather than the agency. Agencies pay workers every week and typically wait weeks for customers to pay, so each new placement widens the funding gap before it closes it. AmeriFactors advances most of each invoice within 4 hours of invoice submission, once the account is established, so payroll runs on the agency's schedule rather than the customer's.
Staffing agencies pay workers every week and typically wait weeks for customers to pay. Every new placement adds payroll before it adds cash, so the gap typically widens as the agency grows. Factoring is built for that gap: it advances most of an issued invoice's value while the customer's payment is still pending.
The gap starts with the bill rate and the pay rate. The spread typically has to cover burden, such as employer payroll taxes and workers' compensation, before it becomes margin.
Timesheet approval adds a second delay, because an invoice usually follows the customer's approval of the hours.
Factoring is underwritten primarily on the creditworthiness of the customer billed, not the agency doing the billing. Staffing agencies typically bill established businesses on regular cycles, so staffing receivables can be funded mainly on those customers' payment history, rather than on the agency's own credit file.
At AmeriFactors, an application leads to a review of the customers' creditworthiness, and customers are assessed to set credit limits. An agency with limited credit history or a recent bank decline can still be a candidate, because customer credit is an important part of the decision.
If factoring is new to you, start with how it works: a business sells invoices its customers already owe and receives most of the value now. AmeriFactors advances most of the invoice value and releases the balance, minus the fee, when the customer pays. Because the invoice is sold rather than borrowed against, factoring typically does not add debt.
AmeriFactors funds staffing agencies, among the other industries it serves. Eligibility rests mainly on the invoices and the customers behind them, so an agency's age, profitability, and collateral are not the main tests, and a newer agency with strong customers can still qualify.
AmeriFactors underwriting looks mainly at the invoices and the customers who owe them. It checks five things: business-to-business invoices for work already completed, customers who pay reliably, ordinary payment terms, no competing lien, and documentation that supports verification. Company age, profitability, and collateral are not the main tests.
In staffing, customer-approved timesheets are typically the documentation behind each invoice. A competing lien, or a customer that declines to verify an invoice, can stop a deal from proceeding. To start, an agency applies with supporting documentation, gets approved, and signs an agreement, then submits invoices for first funding.
For a staffing agency, AmeriFactors factoring works like this: the agency submits an invoice for completed work, AmeriFactors advances most of the invoice value within 4 hours once the account is established, the customer pays AmeriFactors on the original terms, and the balance is released to the agency minus the fee.
Approval starts with the customers: AmeriFactors reviews their creditworthiness, so the agency's own credit history is not the main test.
In most factoring arrangements, the customer is notified to pay the factor instead of the agency.
AmeriFactors advances up to 90 to 95% of each eligible staffing invoice. Advance rates vary by industry and payment terms, and factoring is underwritten primarily on the creditworthiness of the customers billed. Funding follows within 4 hours of invoice submission, once the staffing agency's account is established.
As an illustration only, if AmeriFactors advances a percentage of a $1,000 invoice up front, the rest is released when the customer pays, minus the fee. The fee is calculated on the contracted collection period rather than as an annual rate.
Yes. AmeriFactors offers payroll funding to staffing agencies, and invoice factoring advances cash against invoices for work already completed. Funding follows within 4 hours of invoice submission, once the account is established, so an agency can pay workers without waiting for customers to pay on their original terms.
Timing follows the invoice, not the payroll date, and an invoice for work not yet completed cannot be funded. In staffing, an invoice typically follows the customer's approval of the hours, so late approval can delay the funding.
Often, yes. AmeriFactors advances against eligible staffing invoices as the agency submits them, and factoring generally scales with invoicing, so funding grows with the billings a new contract produces. In factoring generally, funding follows an issued invoice, so the agency's own cash typically covers hiring and the first pay period.
A typical sequence has five steps. First, the agency completes setup: an application with supporting documentation, approval, and a signed agreement. Second, it hires and starts workers and pays the first pay period from its own cash. Third, the customer approves the timesheets and the agency issues the invoice. Fourth, the invoice is submitted and funded within 4 hours, once the account is established. Fifth, the customer pays AmeriFactors on the original terms and the balance is released, minus the fee.
Customer credit also matters. AmeriFactors assesses customers to determine appropriate credit limits, and in factoring generally those limits can affect how much is funded against one customer's invoices.
To open an account, AmeriFactors asks a staffing agency for an application with supporting documentation, then approval and a signed agreement. After that, AmeriFactors confirms the underlying transaction before advancing on an invoice. In staffing, customer-approved timesheets are typically the proof of the hours billed.
Disputes and incomplete documentation slow verification. A consistent customer approval routine typically makes it quicker.
Not necessarily. You have full control over which invoices your company wants to factor. AmeriFactors funds the staffing invoices you choose within 4 hours of invoice submission once the account is established, and the customer pays AmeriFactors on the original terms.
Terms and conditions apply. Services offered by AmeriFactors® Financial Group, LLC