Payroll goes out before the client pays

A staffing agency often pays its people this week and waits on the client for the next. The work is done. The invoice is out. Payroll does not wait for that check.

That gap shows up when a week is heavier than usual, when a client pays in 30 or 45 days, or when a new account starts before the first invoice comes back. The agency can be growing and still be tight on Friday.

A funding conversation is about that gap. It is not a judgment on the business. It is a question of whether money against those invoices would make payroll easier to meet while the client payment is still on the way.

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