Every staffing firm runs on the same math problem. Your workers get paid Friday. Your clients pay in 30, 45, sometimes 60 days. Money Only funding is one way to solve it.
That gap is the single biggest constraint on growth in this industry. Win a new contract and you need more cash, not less, because payroll goes out weeks before the first invoice comes back.
Payroll funding closes that gap. But not every firm needs the same kind of funding. At Madison Resources, we offer two models: Full Service and Money Only funding. They solve the same cash flow problem in different ways, for different kinds of firms.
Here is how Money Only funding works, how it compares to Full Service, and how to tell which one fits your business.
What Is Money Only Funding?
Money Only is funding without the back office. It is built for staffing firms that already run their own payroll processing, billing and tax filing, and want to keep it that way.
You keep your systems and your people. Madison advances the cash tied up in your receivables so you can make payroll, take on larger contracts and grow without draining your reserves.
The structure is simple:
- 90% advance on submitted invoices, less the fee
- 10% reserve held until your customer pays, then returned to you
- Weekly ACH funding on your business cycle
Your customers still see your company, not ours. Money Only clients get a payment portal branded under their company name, checks made payable to their company name, and updated cash and aging reports.
How the Money Only Process Works
Money Only runs on a weekly cycle. Once a new client is approved, the rhythm repeats every week.
Before you start: new client approval. Submit customer information and credit requests for new clients through Madison’s Focus App. We review and approve them before you invoice.
- Submit. Each week, submit your invoice numbers and amounts, invoices, supporting timesheets, and proof of tax deposits.
- Process. Madison processes the invoices you submitted that week.
- Fund. We advance 90% of the invoice value to your account by ACH, less the fee.
- Customer pays. Your customer pays the invoice and Madison posts the cash.
- Release. The 10% reserve is returned to you.
That is the whole process. Submit, get funded, repeat every week.
Money Only vs. Full Service: Side by Side
The difference comes down to one question: who runs the back office?
With Money Only, you do. With Full Service, Madison does. Full Service combines funding with payroll processing, multi-state payroll taxes and invoicing, so your team can focus on recruiting and sales.
Why Staffing Firms Choose Money Only
Money Only is not a stripped-down version of Full Service. For the right firm, it is the better fit. Here is why owners choose it.
You already built a back office that works. If you have a payroll team, a billing process and a tax filing routine that run smoothly, there is no reason to rip them out. Money Only adds cash without changing how you operate.
You want control of the details. Some owners want their own team handling every paycheck and every invoice. Money Only keeps those decisions in-house.
You only need working capital to grow. Landing a large new account means floating weeks of extra payroll. Money Only scales with your receivables, so funding grows as your billings grow.
When Full Service Is the Better Fit
Money Only asks you to do the back-office work yourself. That is a real cost, even if it does not show up on a funding statement.
Full Service tends to make more sense if:
- You are a newer firm without a payroll or billing team yet
- You are expanding into new states and do not want to manage multi-state payroll taxes
- Your recruiters or owners are spending hours on payroll and invoicing instead of sales
- You want 100% funding rather than a 90% advance with a reserve
The honest answer is that many firms start in one model and move to the other. A firm that begins with Full Service may build its own back office over time. A firm on Money Only may decide its team’s hours are better spent on recruiting. Both paths are normal.
Find the Right Funding Model for Your Firm
The payroll-to-invoice gap does not go away as you grow. It gets bigger. The firms that scale are the ones that decide early how they will fund it.
Madison Resources has backed staffing firms nationwide since 1992. We are 100% staffing focused, independent, and we do not bury costs in the fine print. Whether you want funding only or funding plus the back office, we will build the program around how your firm runs.
If you run your own payroll and billing and need cash flow that keeps pace with your receivables, Money Only was built for you.
Talk to Madison about Money Only. Call 800-508-3863, or contact us here.
Ready to start your funding journey? Partner with Madison Resources today [apply here]
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Frequently Asked Questions About Money Only Funding for Staffing Firms
Below are answers to some of the most common questions about Money Only Funding for Staffing Firms.
What Is Money Only Funding for Staffing Companies?
Money Only funding is a funding-only option for staffing companies that run their own back office. Madison Resources advances 90% of your submitted invoices so you can make payroll, while you keep your own payroll processing, billing and tax filing.
How Does Money Only Funding Work?
It runs on a weekly cycle. You submit your invoices, Madison processes them and advances 90% by ACH, less the fee. When your client pays, Madison posts the payment and returns the 10% reserve to you.
What Percentage of My Staffing Invoices Can I Get Advanced?
You receive a 90% advance on each submitted invoice, less the fee. The remaining 10% is held in reserve and paid to you once your client pays the invoice.
Can I Keep My Own Payroll and Billing With Money Only Funding?
Yes. That is the point of the program. Your team keeps running payroll, payroll taxes and invoicing, and Madison provides the working capital.
What Is the Difference Between Money Only Funding and Full Service Payroll Funding?
Money Only, your team handles payroll, payroll taxes and invoicing. Full Service adds Madison’s back office, including payroll processing, multi-state payroll taxes and invoicing, and funds 100% instead of a 90% advance.
Is Money Only Funding Right for My Staffing Agency?
It fits staffing agencies with an established back office that need working capital to grow. If your payroll and billing already run smoothly, Money Only funding adds cash without changing how you operate.
