How do recruitment agencies fund contractor payroll before clients pay?

Agencies pay contractors weekly but invoice clients monthly, so growth widens the payroll gap; invoice finance funds each placement the day you bill it. You pay contractors weekly but clients pay you on 30- to 60-day terms. Every new placement widens the gap, so the faster you grow, the more cash you need up front.

How do recruitment agencies fund contractor

2 min read

Pay weeklyBill monthly

Gap growsWith every placement

Invoice financeFunds it instantly

The recruitment cash trap

You pay contractors weekly but clients pay you on 30- to 60-day terms. Every new placement widens the gap, so the faster you grow, the more cash you need up front.

Fund it as you bill

Invoice finance releases most of each timesheet invoice the day you raise it, matching your income to your weekly payroll. A working-capital facility covers the rest.

Scale without the crunch

With funding tied to invoices, growth funds itself — more placements mean more invoices mean more available cash. The invoice finance calculator shows the release on your book.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Why do recruitment agencies need so much working capital?

Because they pay contractors long before clients pay them, and that gap scales with placements. Invoice finance closes it by releasing cash as each timesheet is billed.

Is invoice finance right for a staffing agency?

It fits the model almost perfectly — funding rises and falls with your invoice book, so cash keeps pace with growth without repeated new loan applications.