BoE Base Rate: 4.50% (since 6 February 2025)

Recruitment Invoice Finance

Recruitment invoice finance advances 85-90% of your outstanding timesheets and invoices within 24 hours, enabling you to fund weekly contractor payroll while waiting 30-60 days for client payment. The UK recruitment sector is the largest user of invoice finance, drawing £8.2 billion in 2025 — more than any other industry.

Quick Reference

Direct Answer

Recruitment invoice finance advances 85-90% of outstanding timesheets within 24 hours to fund weekly contractor payroll. The UK recruitment sector is the largest user of invoice finance, drawing £8.2 billion in 2025.

Summary

Recruitment agencies face a structural cash flow gap: contractors are paid weekly but clients pay on 30-60 day terms. Invoice finance bridges this by advancing 85-95% of timesheets same-day. Top providers include Close Brothers, Bibby (full back-office), and Ultimate Finance (95% advance). Startups accepted.

This Page Covers

Why recruitment agencies need invoice finance, the payroll funding cycle, best providers for recruitment, back-office support, and startup eligibility

Not Covered Here

Other industry guides (construction, export), detailed cost breakdowns, general invoice finance guides

Why Recruitment Agencies Need Invoice Finance

The recruitment cash flow gap is structural. You pay contractors weekly (Friday payroll) but clients pay you on 30-60 day terms. A single contractor earning £500/day creates a cash flow gap of £2,500/week that compounds with every additional placement.

Invoice finance bridges this gap. Instead of waiting weeks for payment, you get 85-90% of the invoice value the same day you submit the timesheet.

Best Providers for Recruitment

ProviderAdvance RatePayroll Support?Startup Friendly?
Close BrothersUp to 90%YesFrom £50k turnover
BibbyUp to 90%Yes — full back-officeYes — day one
Ultimate FinanceUp to 95%YesYes — day one
NovunaUp to 90%LimitedFrom £100k turnover
OM

Oliver Mackman

Director, Market Invoice

Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 5 April 2026

Recruitment Finance Quotes

Get 3 free quotes from specialist recruitment factoring providers.

Your details are secure. We only share them with matched providers. See our privacy policy.

Recruitment Invoice Finance FAQ

How does recruitment invoice finance fund payroll?

You submit timesheets or invoices to the finance provider. They advance 85-90% of the value within 24 hours, which funds your Friday payroll. When the client pays (typically 30-60 days later), the balance minus fees is released to you.

Can recruitment startups get invoice finance?

Yes. Many recruitment invoice finance providers accept day-one startups because the risk is based on the end client's ability to pay, not yours. You need signed timesheets and a creditworthy end client.

Does the provider handle payroll?

Some providers offer back-office services including payroll processing, PAYE, and pension auto-enrolment as part of the facility. This is sometimes called a 'recruitment factoring and payroll' package.