Flexible Funding offers payroll processing and back-office support services for the staffing industry.” Our primary product is invisible-to-your customer asset-based lending (ABL) credit lines, generally secured on a pool of receivables. We also offer factoring—a purchase of individual selected accounts–for people who better understand and prefer that model of financing.
Many staffing agencies prefer the ABL product, primarily because there is nothing on the invoices that indicates that you are receiving funding from a finance company. Your customers continue to make payments to your company while Flexible Funding stays behind the scenes. Our ABL product offers an unlimited credit line that’s regulated by the amount of receivables. You may borrow the exact amount you need, at your discretion, and your accounts receivables remain on your balance sheet as an asset of your business.
For clients that prefer it, Flexible Funding does a lighter and less intrusive form of factoring for staffing agencies; call us for details.
When you first contact Flexible Funding, you’ll likely speak with either Steve Capper (Managing Member and CEO) or Mark Miller, Head of Underwriting and Contracts. We can quickly assess whether you’re the right fit for Flexible Funding, and, if not, will help direct you to a lender who’s a better match for your unique situation. Flexible Funding does not have commission salespeople and doesn’t collect any upfront fees, so you’ll never get any sales pressure from us.
Factoring is technically a purchase and sale of your outstanding invoices. If factoring best meets your business needs, all selected account invoices must run through the factoring company. Generally, when client works with a factoring company, customers will be notified that their invoices are being funded and verified. Notification and verification allow factoring companies to handle riskier situations (such as heavy customer concentration).
Because we don’t have long-term contracts, Flexible Funding offers extremely competitive pricing. The cost depends on a multitude of factors—such as sales volume, how quickly the receivables pay, customer concentration, length of time the company been in business, and the amount the company needs to fund. For more specific pricing, give us a call at 1-800-487-8327 and we can go over the details of your unique situation.
We provide payroll funding across the United States. Click here for a map of the cities and regions we have funded or are currently funding. To learn whether we fund in your area, contact us at 1-800-487-8327 People are also always welcome to meet with us at our office in San Francisco.
Sometimes personal credit can cause problems when you’re trying to get funding for your small business or staffing agency. A below-average score credit report is usually fine, but a bad credit report—or issues with the IRS—will typically make it hard to fund a loan. Bankruptcies on a credit report will be examined on a case-by-case basis.
Absolutely. Flexible Funding has been helping start-ups for decades now. People call us when their startup is just an idea in their head, and when all the pieces are put together and they’ll be needing payroll “next week.” We have years of experience in the staffing industry, and we’ll be a good resource for your funding needs—and to help you get started.
Yes! Flexible Funding can provide all necessary back-office services. We can help with payroll, tax deposits, invoicing, weekly accounts receivables, and more. Typically, full back-office service runs from about .75% to 1% of the billing amount.
We do, but we will need to verify that billings are set up correctly and confirm that there are approvals for the time worked in the VMS system. We will also need accounts-receivable aging detail showing the VMS billings (if available) or we can walk you through setting up aging on an online system like QuickBooks.
Yes, but never ever in the early stages of our conversations. Term sheets and letters of intent are a bad way to compare different funding companies. They can be quite deceiving, because many other payroll funding companies omit key information and fine-print costs. At Flexible Funding, transparency and education are key—especially when competitors in the deal have a tendency to mislead in their proposals, or if the shopper has a limited knowledge of finance.
In our asset-based lending (ABL) program, anytime you ask for them. They are available daily, upon request. If the total loan balance is paid off by incoming payments, any excess is refunded daily, automatically, directly into your bank account via ACH transfer.
As much as we’d like to help you sever ties with an unsatisfactory funder, we’re not inclined to take any account away from a funder during the terms of an existing contract. (This is why Flexible Funding doesn’t have long-term contracts; you’ll never have this problem with us.) We’re happy to discuss it with you, however, and may be able to tell you whether your current funder is being unreasonable—and whether you have raised your issue with the right person at the company. You might just have to patiently wait it out until the end of the contract. In any case, don’t hesitate to contact us—we’re happy to offer advice.
That’s an essay question—unlike many other companies, we won’t lure you with slogans or marketspeak. If you have the time and desire the education, we’d be happy to discuss the funding industry with you for an hour or more. We also recommend this article by Howard Kane, a concise overview of the funding industry and its programs.
Yes, but we will want to know who they are and that they are a financially solid PEO. We may already have experience reports from our existing customers, or we may contact one of the PEO brokers we know for a credibility report on any PEO.
Yes! Though we work with all kinds of software, most of our customers use QuickBooks.
Whether you do ABL or factoring, you can invoice your customers through QuickBooks. Flexible Funding gets copies of the invoices easily because you can save them as a PDF with one click. We have also developed programs that allow payment collections from your customers to be posted automatically, so you don’t have to do it manually all year long.
No. Since we don’t do long-term contracts, we do not sit on a designated amount of cash as some other companies may do. Any small reserve that is maintained in our program is simply a portion of your accounts receivables that we have not funded. This is not cash in our bank account; it is reflected in your accounts receivables.
Yes, and this is to your advantage. Factoring companies that don’t require a guarantee tend to exert significant amount of control over the staffing agency’s customer account debtors—a level of intrusiveness can hurt customer relationships. Our guarantee is as short as it gets in our industry: just a third of a page. For more on this, see our white paper on the Risk of Banks.
Credit investigation, credit monitoring, and collections upon request
Assistance with QuickBooks and QuickBooks integration with other software systems
Sources and connections for insurance, software, payroll, staffing law, VMS, advertising and web development, mergers and acquisitions, tax workouts, and startup consulting in general and medical staffing
Number-crunching to help with profitability for your entire business, or for any individual account or prospect
Skip tracing and tactical writing/letter editing for our customers
If we don’t have the answer to one of your staffing problems, we are willing to research it at no cost.
Primarily with internal capital, with some fill-in via massive bank credit lines. Everything is closely held: Flexible Funding does not take in capital from strangers or outside investors. We do not issue securities. We are a regulated, licensed, and bonded commercial lender. The State of California investigated our original sources of capital and principals when we entered the business and audits our company annually. Our bank audits us every 8-12 months, and requires significant equity at all times. Flexible Funding has been funding staffing agencies since 1992, and other businesses for even longer than that. We are a member of the Better Business Bureau honor roll.
We start with accounts-receivable aging detail, a complete client list, and we’ll need to run business credit checks on your concentration customers. If you are a start-up operation and don’t have aging accounts detail yet, we can use the names and addresses of a few of your prospect accounts to run credit reports. We do this all confidentially—and at no charge to you.
If the company accounts look reasonable, we’ll ask you to fill out a “short-form” application. Upon receiving this, we will conduct some standard due diligence—such as credit checks on company principals, web research, corporate registration, and UCC search.