Staffing Companies Cash Flow Miracle Invoice Financing Secrets

The Mechanics of Invoice Financing

At its core, invoice financing involves selling your invoices to a third-party financing company, known as a factor. The factor advances a percentage of the invoice value—typically between 70% and 90%—to the staffing company. Once the invoice is paid by the client, the factor releases the remaining balance, minus a fee for the service. This process not only accelerates cash flow but also reduces the administrative burden of collections.