Temporary staffing
Recurring payroll timing
Workers and related payroll costs can fall due before the client pays. Approved timesheets, charge rates, client terms and accurate invoicing are central.
Recruitment cash flow
Recruitment invoice finance
Direct answer: recruitment invoice finance may help an eligible agency manage the gap between paying workers and receiving payment from clients. A provider assesses the agency, invoices, timesheets, client quality, concentration, payroll cycle and any rebate exposure.
NBS Finance is a commercial finance broker and introducer, not a lender. A provider sets availability, charges, security requirements and terms.
Match weekly payroll to accepted client invoices
Hypothetical temporary-staffing cycle: workers complete week one, timesheets are approved and the agency invoices the client. Payroll falls due in week two, while client payment is due later under the agreed terms. If £50,000 of invoices is eligible, an assumed 85% advance gives £42,500. After an additional £2,500 reserve, £40,000 is available before fees or existing drawings. Against a £45,000 payroll and related-cost requirement, the agency still needs £5,000 from elsewhere. These are invented assumptions, not an offer.
Show gross wages, employer costs and PAYE timing in the cash forecast; do not compare funding only with workers’ net pay. Unapproved timesheets, disputed hours, credit notes and concentration caps can reduce availability. A late-paying client can add discount charges and create an ageing exclusion.
Ordinary invoice finance advances eligible client debt. A provider paying workers or supplying payroll/back-office administration is a different service: confirm responsibilities, costs, employment/tax arrangements and what happens if funding is restricted. For the first payroll before eligible invoices, explain the funding gap separately. Compare fees and usable cash, not only an advance percentage.
Payroll and facility questions
Can all permanent-placement invoices be funded?
A provider assesses rebate, replacement and refund exposure. Invoices may be reserved against or excluded while those obligations remain uncertain.
What if a client delays timesheet approval?
Identify approval deadlines and who can resolve disputed hours. An unapproved timesheet may prevent an invoice becoming eligible in time for payroll.
What should an existing agency prepare?
Provide the temp/permanent split, dated ledger, client contracts, approved timesheets, payroll dates and full costs, plus current facility statements and restrictions.
Are personal guarantees or minimum fees standard?
Terms vary. Ask for the actual guarantee/security, service and discount charges, minimums, audit costs and notice provisions before comparing proposals.
Recruitment finance quick scan
| Area | Useful starting information | Why it matters |
|---|---|---|
| Payroll cycle | Weekly or monthly pay dates and expected requirement | Shows the timing gap before client payment |
| Client invoices | Terms, ageing, disputes and customer concentration | Invoice quality and spread affect availability |
| Timesheets | How hours or shifts are recorded and approved | Providers need evidence that the billed work was accepted |
| Current facility | Balance, security, notice and termination terms | Any transfer needs a planned settlement |
A clear enquiry separates temporary staffing, permanent placements and any other revenue. It should also identify PAYE, umbrella or other operating arrangements where relevant to the provider’s checks.
Temporary and permanent recruitment compared
Permanent placements
Rebate exposure matters
A replacement or refund obligation can make an invoice less certain. A provider may reserve funds while the rebate period remains open.
Mixed agency
Show the split clearly
Separate temporary and permanent turnover, invoices, clients and cash requirements so each part can be assessed accurately.
How the recruitment enquiry progresses
Share the payroll gap
Provide the placement mix, payroll cycle, clients, invoices, timesheets and any current facility.
Discuss the operation
NBS Finance clarifies approval, invoicing, credit control, disputes and client concentration.
Provider assessment
Where an appropriate route is identified, a provider reviews the agency, debtors, invoices, systems and supporting records.
Recruitment invoice finance questions
Can a new recruitment agency apply?
Yes, specialist providers consider recruitment start-ups. They assess the founders' sector experience, signed client contracts, projected placements, timesheet and payroll systems, debtor quality and weekly cash requirement.
Can permanent-placement invoices be considered?
Yes, permanent-placement invoices can be considered. Rebate and refund periods reduce certainty, so the provider can reserve part of the invoice until the obligation expires or exclude invoices with unresolved replacement or refund risk.
Does the provider pay workers directly?
Not under every facility. Standard invoice finance and specialist payroll or back-office services are different; confirm what is included.
What if one client represents most of the ledger?
High concentration can reduce availability or provider choice. Give full details of the client, terms and expected work.
Compare the facilities
Understand credit control and client contact
The guide explains how factoring and invoice discounting differ and which operational questions to ask.
Growing temporary or contract payroll?
If eligible client invoices support a substantial requirement, explore larger invoice-finance facilities. Already funded? Review what is restricting availability before considering a provider switch.
Tell us about the payroll timing gap
Start with the placement mix, payroll cycle, clients, invoices and timesheet process.
Delivering care directly rather than supplying staff?
Recruitment finance concerns staffing businesses billing their commercial clients. If your business delivers homecare itself and invoices commissioners, use domiciliary care invoice finance. For adult care and support in people’s own homes, see supported-living finance. Businesses delivering goods or contracted services to NHS organisations can use the NHS supplier guide.