Payroll Funding
Dedicated payroll funding tied to your receivables and contract backlog. Structured around your payroll cycle, not arbitrary banking schedules.
Your employees get paid on time. Every period. Regardless of when your clients pay.
The problem
You pay employees every Friday. Your clients pay invoices in 30, 60, or 90 days. The gap between those two dates is the single largest source of financial stress in labor-intensive businesses.
A staffing agency placing 200 contractors at $25/hour carries $500K in weekly payroll obligations. Clients pay on Net 60 terms. At any given time, eight weeks of payroll sits in outstanding receivables. The P&L shows growth. The bank account shows a crisis.
Missing payroll destroys employee trust, triggers regulatory action, and creates reputational damage that takes years to repair. In a tight labor market, even the perception of payroll instability drives talent to competitors.
The solution
Payroll funding provides dedicated capital tied to your receivables or contract backlog, structured around your payroll cycle. You submit timesheets. You fund payroll. Your clients pay on their normal terms. The gap disappears.
The mechanics
Payroll funding is a financing structure specifically designed for businesses where payroll obligations are immediate but client payments lag by 30-90 days. The funding syncs with your pay cycle, not a bank's calendar.
Your employees or contractors work their hours. You submit timesheets and invoice your clients on standard payment terms (Net 30, 60, or 90).
We advance capital against your outstanding invoices or contract backlog, timed to your payroll schedule. Weekly payroll gets weekly funding. Biweekly payroll gets biweekly funding. The structure matches your rhythm.
Your clients pay their invoices according to their standard terms. No disruption to their payment process. No change to your client relationships.
As your clients pay outstanding invoices, the facility replenishes. As you place more workers and generate more invoices, the facility grows. Capital scales with headcount.
Why it works
Your employees get paid on schedule. Every Friday. Every pay period. Regardless of client payment timing. The owner who used to check the bank balance at 6 AM on payroll day stops checking.
Every new placement increases your payroll obligations before the revenue arrives. Payroll funding absorbs that growth gap. Accept the new contract. Place the workers. Fund the payroll. Collect later.
Won a large contract on short notice? Client expanded headcount mid-week? Emergency payroll funding provides capital within 48 hours for qualified businesses facing urgent payroll needs.
As you place more workers and generate more invoices, your available payroll funding grows. No fixed loan amount. No renegotiation required. The facility expands as your business expands.
We understand bill rate analysis, markup structures, client concentration risk, seasonal fluctuations, and the operational cadence of staffing agencies. Generic lenders do not.
Fit
Payroll funding works best for labor-intensive B2B businesses where payroll obligations are immediate but client payments lag significantly.
Staffing Agencies — Temp, professional, healthcare, IT, light industrial. Weekly payroll against Net 30-90 client terms
Construction Companies — Paying crews weekly while waiting for progress payments or retainage
Professional Services Firms — With upfront staffing costs and milestone-based client payments
Any Labor-Intensive B2B Business — With a timing gap between payroll and client payment
Your business is primarily B2C with immediate payment at point of sale
Payroll obligations are minimal relative to other operating costs
Client payment terms are under 15 days
Your cash flow gap is driven by inventory or equipment, not labor costs
Tell us a little about your payroll volume and client payment terms and we'll come back with real numbers on facility size, cost, and timing.
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Explore the financial toolsThe alternatives
| Payroll Funding | Traditional Bank Line | Invoice Factoring | Merchant Cash Advance | |
|---|---|---|---|---|
| Timing | Synced to payroll cycle | Monthly draw schedule | Per-invoice basis | Lump sum |
| Speed to Funding | 24-48 hours (ongoing) | 4-8 weeks (initial setup) | 2-5 business days per invoice | 1-3 business days |
| Based On | Receivables and contracts | Credit history and collateral | Individual invoice quality | Future sales estimates |
| Scales With | Headcount growth | Annual credit review | Invoice volume | Fixed repayment |
| Best For | Weekly/biweekly payroll gaps | Stable, predictable needs | Accelerating specific invoices | Not recommended |
Factoring accelerates individual invoices. Payroll funding provides a structured facility built around your pay cycle. For staffing agencies, payroll funding integrates directly with your invoicing workflow. Many businesses use both: payroll funding for payroll obligations, factoring for other working capital needs.
Bank lines operate on the bank's schedule and require annual renewal. Payroll funding operates on your schedule and scales automatically with headcount. When your staffing agency grows 40% in six months, the payroll funding facility grows with it. The bank line does not.
Back-office companies bundle payroll processing, tax filing, and financing into a single package. The bundle creates dependency: changing financing providers means changing your entire back-office infrastructure. Payroll funding from Sanctorum is standalone. Your financing and your back-office operations are separate decisions. Pick the best of each independently.
Getting started
We discuss your business, payroll volume, client payment terms, and headcount trajectory. 15-20 minutes. This determines whether payroll funding fits your situation.
Provide basic business information, client details, payroll records, and outstanding invoices. Most applications take 30-45 minutes.
We review your clients' creditworthiness and payment history. For staffing agencies, we also evaluate bill rate structures and markup analysis. Typically completed within 24 hours.
Clear terms showing how the facility works, what you receive, and what it costs. Plain language. No surprises. No hidden fees.
Submit your first timesheets and invoices. Receive payroll funding within 2-5 business days of initial setup. Ongoing funding syncs to your pay cycle.
Typical timeline: 3-7 business days from initial contact to first payroll funded
In depth
We understand bill rates, markups, client concentration, seasonal fluctuations, and the operational rhythm of staffing agencies. Our underwriting reflects staffing economics, not generic lending formulas.
Weekly payroll gets weekly funding. Biweekly gets biweekly. The structure matches your cadence. Banks fund on their schedule. We fund on yours.
New contract won on short notice. Client expanded headcount mid-week. We respond at the speed the situation demands, not the speed a committee allows.
Your financing decision and your back-office decision are independent. We do not require you to outsource payroll processing, tax filing, or operations to access payroll funding.
Common questions
Factoring purchases individual invoices. Payroll funding creates a structured facility specifically designed around your pay cycle. The funding is timed to payroll dates, not individual invoice submissions. For staffing agencies, payroll funding integrates with your staffing workflow. Many businesses use payroll funding for payroll and factoring for other working capital needs.
The payroll funding facility accommodates longer payment terms. If your largest client moves from Net 30 to Net 60, the facility adjusts. Your payroll obligations do not wait for your clients' payment decisions, and neither does our funding.
No. You choose which payroll obligations to fund through the facility and which to cover from operating cash flow. Most clients fund 60-80% of payroll through the facility during growth periods and reduce usage as cash flow stabilizes.
We work with businesses running $50K to $5M+ in monthly payroll. The facility scales with headcount growth. Starting with 10 placements and growing to 200 does not require a new application or renegotiation.
Emergency payroll funding provides capital within 48 hours for qualified businesses. If you need payroll coverage by Friday and contact us Monday, we will evaluate the situation and move at the speed the situation requires.
No. Your financing and your back-office operations are separate decisions. We work with your existing payroll processor, PEO, or internal payroll system. We do not require you to outsource your operations to access financing.
Staffing agencies (all verticals), construction companies, professional services firms, healthcare staffing, and any labor-intensive B2B business with a timing gap between payroll and client payment. Staffing is our deepest specialization.
In practice
Staffing Agency Growth
Construction Payroll Gap
Healthcare Staffing Startup
Professional Services
Accelerate individual invoices for working capital beyond payroll. Many businesses combine payroll funding with factoring to cover the full cash flow gap.
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Learn moreWhether you're a staffing agency funding 200 contractors, a contractor paying 85 field workers, or a consulting firm bridging milestone payment gaps, payroll funding eliminates the timing gap between your labor costs and your client payments. Let's review your situation.
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