Customer payments due after payroll: show when invoices are expected to be paid and how the temporary gap will close.
Business Loans · UK limited companies
Payroll Finance for Businesses
Payroll finance is funding used to manage the timing gap between paying employees and receiving customer income. It may be structured as a loan, revolving facility or, for eligible B2B invoices, invoice finance.
NBS Finance is a broker and introducer, not a lender. An enquiry does not guarantee an offer.
Fund the timing gap, and test the whole payroll bill
Map worker pay dates, employer costs, PAYE liabilities, customer invoicing and expected receipts. A weekly wage run against monthly client receipts creates a recurring cash requirement; the headline invoice amount does not equal available payroll cash.
| Position | Route to discuss |
|---|---|
| Before completed work or eligible invoices | Contribution, affordable working capital or mobilisation may need consideration. A future client contract alone is not an invoice advance. |
| After accepted B2B work is invoiced | Recruitment invoice finance may connect funding to eligible client debt. Other sectors require their own eligibility review. |
| Payroll processing or paying workers | Confirm whether a specialist provider actually supplies payroll/back-office services. Ordinary invoice funding does not automatically include them. |
Hypothetical cycle: four £15,000 weekly payroll and employer-cost runs require £60,000 before an expected £75,000 client receipt. If a provider makes only £50,000 available after its controls, a £10,000 gap remains before fees or other outgoings. Model a delayed receipt and the next wage run. Repeated losses or arrears need a credible recovery plan; borrowing alone does not solve them.
Compare working capital with the relevant invoice route. A business delivering homecare directly should use care-provider guidance.
Common uses
When this may be worth discussing
Growth that increases wages before receipts: show the cash cycle, expected margins and an affordable repayment source.
Contract mobilisation: explain staffing costs before the first customer payment and provide the contract and payment schedule.
Prepare the enquiry
Information that helps produce a useful answer
Providers set their own rates, charges, fees, security and terms. Clear evidence helps distinguish a viable route from an unsuitable application.
- Payroll schedule and headcount
- Customer contracts and expected receipts
- Cash-flow forecast and existing facilities
Important:
Borrowing is not automatically appropriate for payroll the business cannot sustainably afford. Recurring shortfalls need a viable operating plan; finance cannot repair structurally unprofitable trading. Test the cash-flow forecast if customer payments arrive later than expected.
Process
How the enquiry moves forward
Tell us the amount, purpose and timing.
Share the documents relevant to this route.
NBS clarifies the requirement and possible route.
A suitable provider completes its own checks and sets any offer terms.
Payroll funding questions
Can it cover the first payroll before we invoice?
Explain the pre-invoice cash need. Invoice finance normally relies on eligible debt for completed work; another source or contribution may be needed.
What if the customer pays late?
Availability may reduce while charges and payroll continue. Stress-test customer delay, invoice ageing and reserves against the next pay date.
Does the provider handle PAYE and payroll administration?
Only where the agreed service expressly includes it. Confirm who calculates, reports and pays each liability and which charges apply.
Can it finance continuing losses?
A timing gap differs from payroll the business cannot afford. Show margins, overheads, arrears and a credible repayment or recovery case.
Further reading and scope
This page is general commercial-finance information, not legal, tax or accounting advice. Read the relevant official guidance at www.british-business-bank.co.uk.
NBS Finance primarily supports UK limited companies. NBS Finance is not incorporated as a limited company and is not authorised or regulated by the Financial Conduct Authority. Where applicable, NBS works with lenders and intermediaries that are FCA-authorised for their own regulated activities; their status does not make NBS Finance FCA-authorised.
Children’s homes waiting for placement payments
If wages and agency bills fall before council receipts, review children’s home invoice finance and council payment gaps. Eligible billed receivables and costs before invoicing need different funding assessments.
Tell us the outcome your business needs
Start with the amount, purpose and timing. Best estimates are fine.
Start your funding enquiry