Recruitment & Temporary Staffing Funding

Recruitment Invoice Finance for Weekly Payroll and Business Growth

Recruitment invoice finance helps UK staffing agencies pay temporary workers and contractors without waiting 30, 60 or 90 days for clients to settle their invoices. Go-Factor helps recruitment businesses understand, compare and secure the right invoice finance solution for payroll, new contracts and continued growth.

Temporary staffing agencies often pay workers weekly while their clients pay monthly or later. This creates a recurring cash flow gap that can become larger as the agency places more candidates. Subject to approval and eligibility, invoice finance releases an agreed percentage of eligible unpaid invoices before the client’s normal payment date.

What Can Recruitment Invoice Finance Help Fund?

• Weekly temporary-worker and contractor payroll
• PAYE, National Insurance and pension obligations
• Growth from new clients, contracts and candidate placements
• Cash flow while invoices pass through client approval processes
• Extended payment terms from large companies and public-sector clients
• Seasonal increases in temporary staffing demand
• The launch or expansion of a recruitment agency

How Recruitment Invoice Finance Works

1. Your agency supplies temporary workers or contractors to a client.
2. The hours worked are recorded through the agency’s agreed timesheet and verification process.
3. Your agency raises an invoice for the work completed.
4. Subject to the facility’s terms, the invoice finance provider releases an agreed percentage of an eligible invoice.
5. Your agency uses the available working capital to help meet payroll and other operating costs.
6. When the client pays, the remaining balance is released after the provider’s agreed fees, charges and any applicable adjustments.

Which Recruitment Businesses Can Use Invoice Finance?

Recruitment invoice finance can support established agencies, new-start recruitment businesses and growing staffing companies. It may be suitable for agencies supplying temporary workers, contractors or locums across healthcare, social care, education, construction, engineering, logistics, hospitality, industrial and professional services.

Eligibility normally depends on the quality of the agency’s invoices, clients, contracts, debtor profile and timesheet procedures. A limited trading history, rapid growth or previous credit difficulties will not always prevent an agency from obtaining funding. However, every application is assessed individually and funding is not guaranteed.

Factoring or Invoice Discounting for a Recruitment Agency?

Recruitment factoring can include credit control and collection support, which may suit a new or smaller agency without an established accounts team. Invoice discounting allows the agency to retain greater control over customer collections and may suit an established recruitment business with robust financial and credit-control systems.

Confidential invoice discounting may also be available where the agency meets the provider’s operational, reporting and credit-control requirements.

Why Recruitment Agencies Use Go-Factor

Go-Factor is an independent UK invoice finance and business funding broker. We assess the agency’s payroll cycle, client contracts, debtor profile, payment terms, timesheet procedures, credit control and growth plans before comparing suitable funding structures.

Our role is to help recruitment businesses understand their funding options, compare the important costs and conditions, and secure an appropriate facility that can support both immediate payroll requirements and future growth.