Gibraltar Business Capital has experience managing the financial needs and factoring for staffing companies across a wide range of industries including temporary staffing, IT staffing, warehouse staffing, light industrial staffing and others.
Whether your agency needs working capital to hire new talent, maximize a marketing opportunity, or extend client payment terms, factoring allows staffing companies to convert unpaid invoices into cash today.
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Gibraltar’s Accelerated Financing Process
Why Staffing Factoring from Gibraltar?
Line of credit approach
65+ years of experience
Turnkey back office solutions
Free Guide to Factoring for Staffing Companies
Includes the top 10 most frequent questions related to accessing working capital via invoice financing.
Gibraltar has partnered with MVP Staffing to provide back office solutions for staffing companies to minimize the demand on human resources and back office teams. MVP Staffing offers a suite of staff management services and a proven track record for creating efficiencies and streamlining workflows internally. Back office solutions are available as turnkey or a la carte services.
Operating since 2000, MVP Staffing has deep expertise in all aspects of staffing administration and managing staffing needs.
The standard advance rate for staffing companies is 85% of the accounts receivable balance. However, at Gibraltar, every advance rate is customized for each client and some may qualify for a higher advance rate.
The advance rate alone does not determine liquidity; it is the starting point. Other factors influencing the liquidity we provide include the credit worthiness of your customers and the diversity of your customer base.
To maximize your liquidity with a staffing factoring company, ask about their credit approval process as well as how they evaluate the willingness of your customers to pay.
Closing time varies by staffing factoring company. Gibraltar takes pride in our ability to react quickly to our customers’ needs. We provide an initial proposal within 24 hours of receipt of the required financial documents. And, our team can close an approved transaction in as few as 5 business days.
It is important to understand every aspect of a pricing proposal. As a customer-focused provider, Gibraltar recommends basing your decision on several factors – not solely on cost. Gibraltar considers what a specific client is looking for and weighs it against the risks associated with the transaction to determine the cost.
As in most financing situations, the less risky the deal, the lower the price. And the reverse is true as well. Regardless of the scenario, Gibraltar is consistently competitive on price. Our team is happy to do price comparisons and calculations upon request.
Gibraltar’s approach to factoring is simple and transparent. Traditionally, staffing factoring companies operate on an invoice-specific basis. That means they look at each individual invoice as a separate transaction, approving and verifying each invoice.
In contrast, Gibraltar pools all of your invoices and creates a “borrowing base” or line of credit of total funding available. After delivering products or services, simply submit invoices for inclusion in the borrowing base calculation. Gibraltar will update the borrowing base availability daily based on new invoices and collections. When you require an advance, fill out the amount you want, sign the borrowing base certificate and submit it to Gibraltar.
Gibraltar is a customer-centric company, and your relationship with your customer is just as important to us as it is to you – we uphold the same integrity of the relationship that you have with your customers. When our team selectively contacts our client’s customers, we confirm that they were satisfied with the delivery of products or services and are willing and able to pay the invoice in the ordinary course of business. Many of our clients do not have back-office staff and internal processes to conduct thorough quality assurance calls, so for many clients, this is an appreciated and valuable business service.
The answer will vary based on the staffing factoring company you work with, but for Gibraltar clients, the short answer is no, you do not. However, there is no compelling reason not to send all invoices to Gibraltar given that you only pay for what you access with our line of credit approach. In fact, sending all invoices is actually a benefit as it 1) provides you with extra liquidity if you ever need it in a pinch, 2) facilitates more collections activity, which will pay your balance down faster, saving you on fees, and 3) is easier to track and manage.
Every situation is unique and customized by client, so which and how many customers we verify will vary. When clients submit the initial batch of invoices for the first funding, Gibraltar sets a credit floor based on the size of the pool of invoices against the individual sums of the invoices. Gibraltar sets the credit floor to capture the top 4 or 5 customers by dollar amount as that is where the concentration of risk lies. Any customer whose balance is below the credit floor gets full credit approval. For customers that are above the floor, we work with you to assign an individual credit limit.
Gibraltar’s line of credit approach provides a distinct advantage for customers. Should an invoice fall out of availability for any reason, businesses may still be “in formula” if you have not accessed the full amount of your availability. In the event you were maxed out when the invoice becomes ineligible, you will most likely be temporarily out of formula. No need to fret! Producing new invoices or receiving collections within the next few days allows businesses to quickly and easily get back within formula.
Gibraltar finances U.S.-based businesses selling to other businesses (B2B, not B2C).
1+ year in business
$2MM in minimum annual revenue
Minimum of $300K in average accounts receivable balances (outstanding invoices)
Capital needs from $250K to $10MM
Initial financial documents required to establish a relationship with a factoring company may vary slightly, but typically include a summary accounts receivable aging, a summary accounts payable aging, a current balance sheet and a recent profit and loss statement.