Funding FAQ

With payroll funding (also known as invoice factoring), Lone Oak purchases your accounts receivable and provides you with an advanced percentage of your invoice amounts.

You receive peace of mind with a more flexible cash flow to pay your employees or other expenses. Payroll funding also accelerates your revenue stream so you can address expenses such as a lease, suppliers, payroll, and additional operational costs.

Additionally, we offer the ability to cover your customers’ payroll. We use the invoices as collateral, which is how you’re able to access funds immediately to cover payroll and operate your business.

Review this infographic, which explains payroll funding in seven simple steps.

Yes, there is a contract in place to protect both parties. Each contract is unique, customized based on your needs and the specific services we’ll provide you.

Gain further insights from our staffing agency playbook.

Yes, we work with both staffing agency start-ups and established staffing agencies looking to expand or increase their revenue.

We’re a long-term, scalable solution—which means we work with your team as your company grows.

Lone Oak charges a factoring fee for providing payroll funding services. Additional costs related to payroll funding could also impact your final amount. Taxes, payroll, and other considerations may affect your total payment.

That being said, staffing firms who partner with Lone Oak report that their added value far outweighs the costs associated with factoring.

Our team can discuss specifics with you and give you an understanding of what you may face in your particular situation. We value full transparency, and all costs are stated upfront in your contract.

In short, payroll funding is selling your invoices, while getting a loan means borrowing money that you will have to pay back later. Both options can provide funds for your business, but there are some key differences.

Loans are based on creditworthiness. Banks scrutinize businesses and the backing of their financial investors. This process takes time—sometimes weeks or months. It also requires three years of financial statements, a cash flow analysis, and collateral appraisals. If you can acquire a line of credit, it’s usually for a fixed amount, which can limit your staffing agency’s growth.

 Payroll funding is more adaptable. This enables a funding company to support staffing agency start-ups and other rapidly growing staffing agencies that often cannot get funding from a bank.

Learn more with our ultimate funding guide.

While banks might turn you away for bad credit, payroll funding may still be an option for you and your business. Lone Oak was created to make funding accessible to as many staffing firms as possible.

Traditional loans often use your company’s credit history to determine whether or not to give you a loan. Because payroll funding relies on purchasing your invoices rather than offering a loan, we are often able to provide more leniency than traditional loan providers.

Do you want to grow your staffing agency? Secure added support? Reduce costs? Save valuable time?

If you answered yes to any of these questions, Lone Oak is a great fit for your business.

Lone Oak supports small, midsize, and large staffing agencies. We help you achieve your goals by providing the best solution tailored to your company’s unique needs and growth initiatives.

The best way to know if Lone Oak is right for you is to book a free consultation. You can contact us any time to see if we’re a good fit for your business.

Lone Oak is more than just your payroll funding company. Our team works hard to become a seamless extension of your internal staff to support your staffing agency’s operational needs.

When you partner with us, you receive secure funding, access to a team of payroll experts, extensive support for your processing needs, and more.

We also provide full-service assistance for many aspects of your finances, including:

• Credit checks
• Payroll processing
• Tax calculations & processing
• Software with an all-in-one ATS & CRM

Take advantage of our complete offerings to streamline your payroll and tax functions. 

With Lone Oak by your side, you’ll always have access to a dedicated team who will put our experience to work on your behalf. We offer 24/7 support via phone and email, a dedicated account manager, and a full onboarding module to get you up to speed.