Temp Agency Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 87 UK invoice finance providers.

Temp agency finance is specialist UK invoice finance designed for temporary recruitment agencies running weekly worker payroll while waiting 30 to 90 days for client invoice payment. The best-known bundled proposition is Sonovate (funding, timesheets, PAYE payroll, worker payments and client invoicing on one platform). Bibby and Aldermore serve larger established temp agencies, with payroll run by the agency or a separate bureau. Sonovate's blended fee is 2 to 4 percent of worker invoice value on our provider data; the facility scales with agency growth without requiring proportional working capital injection.

What this page covers

This page covers

temp agency finance UK: weekly worker payroll funding, AWR, holiday pay, best providers for temporary recruitment

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

ProviderFee fromMin turnoverWhy it fits
Sonovate2-4% blendedNo minTech + finance, payroll built in
Bibby Financial ServicesNot publishedNot publishedEstablished agencies + credit control
AldermoreNot published£750kConfidential discounting for established agencies
IGF Invoice FinanceNot published£5mBusinesses over £5m turnover (asset-based lending)

This page covers temp and contract agency funding specifically. For the ranked comparison of providers across the whole recruitment sector, see the best invoice finance providers for recruitment agencies.

AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

Last updated:

Get 3 Free Invoice Finance Quotes

Free, no obligation.

Step 1 of 3 · Your business

Start typing and we'll search Companies House.

Free to you: our introduction partner pays us a fixed fee for each introduction, whether or not you go ahead. See our privacy policy.

Free · No obligation · Nothing to pay us

How we make money: Market Invoice is an independent comparison service, not a lender. Our introduction partner pays us a fixed fee for each business we introduce, whether or not you go ahead; you never pay us and it is never added to your costs. How we are funded.

Temp Agency Finance UK FAQ

How does temp agency finance work?

Workers submit weekly timesheets, the agency pays them weekly via PAYE (with holiday pay accrual + AWR rights tracked), invoices the end client at week-end, and the finance provider advances an agreed share of the invoice, often within 24 hours. End client pays the invoice 30-90 days later, the balance (minus fee) is released to the agency. The provider funds the gap between weekly payroll outflow and monthly client inflow.

What is AWR and how does it affect temp agency finance?

Agency Worker Regulations 2010 give temp workers parity rights with permanent employees at the same client after 12 weeks. Specifically: same basic pay, working hours, holiday entitlement, paid time off for ante-natal appointments. The agency needs to track week counts per worker per hirer, so ask whether a provider's platform does it for you. Without AWR tracking, agencies risk back-pay claims.

Best temp agency finance provider?

Sonovate for tech-led temp agencies, especially in IT, engineering, healthcare and education. Bibby for established temp agencies needing credit control plus separate payroll bureau. Aldermore for established temp businesses (minimum turnover £750k) wanting confidential discounting. Skipton for mid-market temp with industrial / engineering bias.

Holiday pay handling with temp agency finance?

Workers are entitled to 5.6 weeks paid holiday per year (28 days for a full-time, five-day week). For irregular-hours and part-year workers, holiday accrues at 12.07% of hours worked in each pay period. Whoever runs your payroll, the agency, a bureau or a bundled provider, must accrue and pay it correctly. Failure to accrue properly results in worker complaints to ACAS or employment tribunal claims.

Temp vs permanent recruitment finance?

Temp finance: weekly funding cycle, factoring on every weekly invoice, fees bundled with payroll (Sonovate: 2-4% blended on our provider data). Permanent finance: one-off invoice per placement (typically 15-25% of first-year salary), factoring at standard invoice finance fees (0.5-2%). Most agencies use a blended facility covering both. Ask each provider whether it will fund permanent placement invoices on the same facility.

Cost of temp agency finance UK?

Sonovate: 2-4% blended of worker invoice value on our provider data (all-in). Bibby and Aldermore do not publish fees and quote per facility, with payroll paid for separately. Compare the total annual cost against your agency margin.