Payroll financing is working capital that advances cash against your unpaid client invoices so you can make payroll while you wait 30 to 90 days to get paid. It's most often used by staffing agencies, where payroll is due weekly but clients pay on net terms. BuildUp Capital provides it as a receivables-backed line of credit — secured by invoices owed to large, creditworthy companies and government agencies — so available credit grows as your billings grow. Unlike a fixed bank loan, the line scales with your placements; unlike factoring, you keep your client relationships. Available nationwide.
Here's the cycle it solves: you place workers and run payroll every week, but your clients pay their invoices on net-30, net-60, or net-90. The faster you grow, the wider that gap gets — every new placement is more payroll out the door before the cash comes back in. Payroll financing closes the gap by advancing against the invoices you've already billed, so payday never waits on a client's accounts-payable schedule.
It's built for labor-based businesses: temporary and contract staffing, healthcare and nurse staffing, light-industrial and warehouse staffing, IT and professional recruiting, and security or janitorial services — any agency that runs payroll before its clients pay. The common thread is creditworthy clients, because repayment comes from those invoices: the strength of who owes you is what makes the structure work.
Payroll financing is often confused with two other products. A bank line of credit is a fixed amount based largely on your own balance sheet and history, so it doesn't scale with a fast-growing agency. Invoice factoring sells your invoices to a third party who then collects from your customers. A receivables-backed line of credit — how BuildUp structures payroll financing — sits between them: you borrow against your invoices, keep ownership of them and your client relationships, and the line grows as you bill.
A good fit is an agency billing large, creditworthy companies or government agencies on standard terms and growing faster than a conventional bank line allows. It's available nationwide, because the line is secured by your receivables and the credit of who owes you, not by local real estate. If you qualify, you'll know quickly — and if payroll financing isn't the right structure for you, we'll tell you what is.
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