Invoice Finance for IT Contractors & Staffing

If you run an IT staffing agency or place tech contractors, you know the problem: your contractors want paying every Friday, but your end clients pay on 30-60 day terms. Place 10 contractors at £400-£600/day and you need £20,000-£30,000 cash every single week. Invoice finance advances 85-95% of your timesheets within 24 hours, funding each week's payroll from the previous week's work.

How It Works for IT Staffing

What About Umbrella Company Placements?

If your contractors work through umbrella companies rather than being on your payroll, the cash flow dynamic is different — the umbrella handles PAYE. But you still invoice the end client on 30-60 day terms and need to pay the umbrella weekly. Invoice finance still applies; the umbrella's invoice to you becomes the trigger for payment, and the end client's invoice to you becomes the asset the provider funds against.

Day One Startups Welcome

This is one of the few sectors where you can get invoice finance from your very first day of trading. If you're placing a developer at a FTSE 100 company on a 6-month contract, the provider knows the end client will pay. Your trading history is irrelevant — the strength of the placement is what matters.

Providers like Bibby and Ultimate Finance actively specialise in startup recruitment agencies and will advance against your first placement.

Back-Office Services

Some providers offer payroll, PAYE, pension auto-enrolment, and credit control as part of the factoring package. For a small IT staffing agency this can be transformative — instead of running payroll yourself, the provider handles it all. You focus on winning placements and managing client relationships. Bibby's back-office package is particularly comprehensive for recruitment.