# Payroll float

A term used when buying staffing agency.

Paying workers weekly while clients pay in a month or two, a gap the agency has to fund.

This is the cash trap of the trade. Growth consumes money rather than producing it, because more placed workers means more wages paid weeks before the invoices clear, so an agency winning a large account can run out of cash while doing everything right. Size the [working-capital](https://searchspheresource.com/glossary/working-capital) line as carefully as the earnings, and find out whether the seller has been funding it with a facility that will not transfer to you.

Part of: Buying a Staffing Agency (https://searchspheresource.com/guides/buying-a-staffing-agency)

Source: https://searchspheresource.com/guides/buying-a-staffing-agency/terms/payroll-float
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt