Answer

How do recruitment agencies fund contractor payroll?

Recruitment agencies often pay contractors weekly but bill clients monthly — a built-in cash gap that invoice finance or a facility is designed to fill.

2 min read

RecruitmentSector focus
Timing gapsCommon cash strain
No PGCompany-only finance

Why recruitment firms need finance

Placing temporary and contract staff means paying them promptly — often weekly — while clients pay on 30 or 60-day terms. The faster the agency grows, the wider this working-capital gap becomes.

What tends to fit

Invoice finance against client invoices releases the cash to fund weekly payroll and scales with placements, so growth funds itself.

What it means for you

See the sector view for recruitment. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Why do recruitment agencies struggle with cash flow?

Because they pay workers weekly but bill clients monthly, and the gap widens as they place more staff. It is a timing problem that grows with success.

What finance suits a recruitment agency?

Invoice finance is a natural fit, releasing cash from client invoices to fund payroll and scaling with the number of placements.

Funding for UK limited companies

Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.