What Is Invoice Factoring?
Invoice factoring—also called payroll funding, invoice financing, or A/R funding—is the practice of selling your outstanding client invoices to Encore in exchange for immediate working capital. It’s not a loan. It’s your earned revenue, available now instead of 30 to 90 days from now. Encore buys your invoices, advances the cash, and manages collections, so your operations keep moving regardless of when clients pay.
Benefits of Factoring for Staffing Firms
Factoring eliminates the feast-or-famine cycle caused by uneven client payment schedules. You get consistent working capital week after week, giving you the stability to plan, hire, and grow with confidence.
Encore ensures you always have the capital to meet your payroll obligations for W-2 employees, 1099 contractors, and independent talent. Your workers get paid on time, every time.
Once your account is active, advances on submitted invoices happen fast. No lengthy bank review cycles, no hard collateral, just quick access to capital so you can act on new opportunities without delay.
When payroll is covered and capital is accessible, you stop managing cash flow anxiety and start managing growth. That shift changes how you run—and build—your business.
Why Staffing Firms Choose Encore
Industry Expertise
30+ years and 3 generations of funding staffing firms exclusively. We understand your bill rates, payroll cycles, and client dynamics and build funding structures that work with all of it.
Flexible Funding
Advance rates from 80 to 90% of invoice value, with no fixed caps. Your capital access scales automatically as your invoice volume grows.
Faster Approvals
Most agencies are onboarded and funded within two to three weeks and, once active, each invoice submission is processed the same day or next day.
Scalable Solutions
From a startup’s first payroll run to an enterprise firm managing national MSP contracts, Encore’s structure adapts to every stage. You won’t outgrow us.
Personalized Support
A dedicated account team who knows your business and clients, not a call center. Real people, available when you need them.
Partner with Encore
We help companies and communities grow through lasting partnerships, deep expertise, and hands-on support, from due diligence through closing, and beyond.
Longevity
30 years of specialty finance and staffing industry experience.
Flexibility
Creative capital solutions tailored to fit your needs.
Commitment
A reputation built on trust, through good times and bad.
Relationships
Deep staffing industry relationships.
Efficiency
Fast, focused execution with a seamless closing process.
How the Process Works
No matter what kind of staffing you do, we can help you grow. We take a generalist approach, with sector-specific experience across these verticals:
Submit Invoices
After each payroll period, submit your completed client invoices to Encore. We review them, run credit checks on new accounts, and flag any issues before they become cash flow problems.
Receive Funding
Encore advances up to 90% of invoice value directly to your account. Funds are available quickly so you can run payroll and cover operations without delay.
Client Payment Management
Encore manages A/R collections in your name, professionally and discreetly. Clients remit to a lockbox, processed within 24 hours. We handle disputes and short pays.
Ongoing Support
Your dedicated account team monitors your portfolio, delivers real-time reporting, provides client credit research, and advises on funding and business decisions as your agency grows.
Funding FAQ
Most agencies are onboarded and receive advances within two to three weeks of submitting their application. Once active, each invoice batch is typically funded the same day or the following business day.
Encore funds staffing agencies across healthcare, IT, light industrial, office and clerical, hospitality, education, government, and disaster recovery. If you’re running a staffing firm and invoicing clients, there’s a strong chance we can work together.
We typically fund invoices for services that have already been completed and are owed by creditworthy businesses or organizations. Eligible invoices generally have clear payment terms, are not significantly past due, and are free of disputes, offsets, or other issues that could affect collection. Eligibility may vary based on the customer, invoice terms, and overall credit profile.
Clients are directed to remit payment to Encore’s lockbox rather than directly to your agency. This is standard practice and well understood by most clients. Encore handles the transition professionally to protect your client relationships.
Rates depend on your volume, industry, and client payment history. Encore offers competitive, transparent pricing with no hidden fees and flexible contract terms. We walk every prospective client through their specific options during the consultation.
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