I can remember a time long long ago when there were some temp agencies that paid temps on Friday of the same week that we worked. Now, it seems that all the agencies are stretching pay day as far as possible into the following week.

The only real work that some temp agencies actually have to do is being able to make payroll. A lot of temp agencies farm out the actual payroll production to companies like ADP, but the temp agency itself has to actually have enough money in the bank to pay temps UNTIL the clients pay them.

The point of stretching payroll into the following week is to allow more time for Clients to pay invoices so that payroll can be done from cash on hand rather than having to borrow money to make payroll. Borrowing money to make payroll it costs money because it's a loan; even if you use your own saved money to make payroll it costs you because that money is then not earning interest.

I know from having my own LLC that companies can take a long time to pay invoices. In fact, I've heard that some temp agency won't work with government agencies because government agencies take too long to pay invoices.

Government agencies DO advertise their contracts for temporary help, so when you and your friends create your own company you can go to Commerce Business Daily and the New York Contract Reporter and look for contracts to bid on.