Invoice Factoring for Professional Services Firms

Staffing agencies, consultancies, and other professional services firms that bill other businesses often wait 30, 60, or even 90 days to get paid, while payroll and overhead are due now. Invoice factoring converts unpaid client invoices into immediate working capital instead of waiting out those payment terms.

Why factoring fits professional services specifically

You sell your outstanding invoices to a factoring partner at a discount and receive a large portion of the invoice value upfront; the factoring partner then collects directly from your client. This is especially common for staffing firms, where payroll for placed workers is due well before the client invoice is paid.

Common uses for professional services firms

• Covering payroll for staffing placements while client invoices are outstanding
• Taking on a larger client engagement without waiting on existing receivables
• Smoothing cash flow around long client payment terms

What to expect

Commonly requested items include your outstanding invoices, accounts receivable details, and information about your clients.

Frequently asked questions

Will my clients know I’m factoring invoices? In most arrangements the factoring partner collects payment directly from your client, so your clients are typically aware.

See the full Invoice Factoring product page, or explore funding options for the professional services industry.