Invoice finance for recruitment agencies

Pay your temps on Friday. Don’t wait 60 days for your clients.

Recruitment agencies pay workers every week and get paid every month or two. Invoice finance releases most of each invoice as soon as it’s raised, so payroll never depends on when a client pays.

  • Funding for temp and contract placements, and often perm fees too
  • Some providers can run your payroll and back office as well
  • Grows as you place more workers
Free · No hard credit check · One specialist, not ten calls
A typical week for a temp desk
£34,000Within days
£6,000Day 45
Around 85% of a £40,000 invoiceLess fees
FridayYou pay 25 temps for the week: about £16,000 in wages.
MondayYou invoice the client £40,000 for the month’s timesheets, on 45 day terms.
TuesdayThe funder pays you around £34,000 (85%).
Day 45The client pays. You receive the rest, minus the funder’s fees.
Illustration only. Advance rates and fees vary by funder.See what I could release
Sound familiar?

Every new placement makes cash flow tighter, not easier.

“We won a big contract, and I’m worried about funding the payroll.”

Invoice finance grows with your invoices, so a bigger contract brings more funding with it.

“The client pays on 60 days, but the temps want paying on Friday.”

You can’t change either. You can stop waiting for the client.

“I spend Thursday nights moving money around to cover wages.”

With funding released as you invoice, payroll is covered by money you have already earned.

How it works

How invoice finance works for recruitment

1

Timesheets in, invoices out

Keep billing clients as you do now, weekly or monthly.

2

Upload or sync invoices

Many recruitment funders take timesheets or connect to your billing software.

3

Cash in a day or so

Typically 80 to 90% of each invoice, ready for payroll.

4

Clients pay as normal

You get the balance, minus fees, when they do.

Why a specialist matters

What’s different about funding a recruitment agency

Temp and contract

The core of recruitment finance. Funders advance against invoices from approved timesheets.

Perm fees

Some funders fund permanent placement invoices too, often at a lower advance because of rebate periods.

Payroll and back office

Some providers bundle payroll, pay and bill, and credit control into one service. Useful for new or fast-growing agencies.

Start-ups

Recruitment is one of the few sectors where new agencies can sometimes get invoice finance, if the first client contracts are in place.

Honest check

Is invoice finance right for your business?

Usually a good fit

  • Temp, contract or interim placements billed to businesses
  • Clients on 14 to 90 day terms
  • Limited company or LLP
  • Signed timesheets or clear client approval

Harder to fund

  • Mostly perm fees with long rebate periods
  • One client making up nearly all your billing
  • Workers placed with consumers rather than businesses

Not sure? That's what the call is for. If it isn't the right fit, your specialist will tell you and suggest what might work instead.

No surprises

What happens after you enquire

1

Two minutes online

A few questions. We find your company on Companies House as you type.

2

A text from us

Straight away, with the name of the specialist who'll call you.

3

A short call

Usually within a working day. About 15 minutes on how your business trades.

4

Options in plain English

What is available, the full cost in pounds, and what they would need.

5

You decide

No obligation. Saying "not right now" is fine.

Questions from recruitment businesses

Sometimes. Recruitment is one of the sectors where funders will look at new agencies, especially with signed client contracts in place. Your specialist will tell you who might help.

Get paid for work you’ve already done.

Two minutes. Free. No hard credit check. One specialist, not ten calls.

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