Payroll funding gives staffing agencies fast access to the cash they need to cover weekly payroll—even when clients take 30–60 days to pay. If you run a nurse staffing, healthcare staffing, or temp agency, this guide explains exactly how to set up payroll funding in just five steps.
Before You Being: What You Need
- Valid business entity
- Invoices billed to commercial clients
- Weekly payroll obligations
- Facility contracts or purchase orders
- Clean invoicing processes
Step 1: Gather Your Staffing & Financial Documents
Payroll funders evaluate your business, clients, and invoicing process.
Prepare:
- Client list with contacts
- Sample invoices
- A/R aging report
- Articles of incorporation
- EIN/W-9
- Voided business check
Step 2: Apply With a Specialized Payroll Funding Company
Choose a funder experienced with staffing (especially healthcare).
Approval usually takes 24–72 hours.
Step 3: Submit Invoices After Each Payroll Cycle
After payroll is run, submit approved timesheets + invoices.
Most agencies fund:
- Weekly
- Twice weekly for high volume
- Daily during rapid growth
Step 4: Receive Your Cash Advance (80-90%)
Funding arrives within 24–48 hours.
This covers:
- Payroll
- Taxes
- Recruiting
- Onboarding
Step 5: Get Your Reserve When Clients Pay
When the facility pays, the funder releases the remaining 10–20% reserve minus the fee.
Troubleshooting Tips
| Problem | Solution |
| Invoice verification delays | Use accurate timekeeping + approved timesheets |
| Client disputes | Communicate early, send confirmation of hours |
| Unexpected payroll spikes | Notify funder before onboarding large groups |
Next Steps
Payroll funding is straightforward once set up. To streamline your onboarding, your funder can also assist with:
- VMS portal billing
- Collections
- Credit checks on new facilities
Contact PRN Funding to set up payroll funding for your agency.
