Lendus.

Invoice Finance for Staffing Agencies

Pay your temporary workers on time, every time — unlock client invoices within 24 hours and stop payroll ever being held hostage to slow-paying businesses.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

0.5% – 2.5%

of invoice value

Advance

Up to 90%

of invoice value

Facility Size

£20k – £5m

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Why staffing businesses use invoice finance

Staffing agencies — whether supplying industrial, commercial, healthcare, or specialist workers — share a universal cash flow problem: workers must be paid weekly or fortnightly, but client businesses typically settle invoices on 30 to 60-day terms. The agency bears the entire cost of labour while waiting for payment, effectively acting as a bank for its clients. As a staffing business grows and places more workers, this funding gap widens rather than narrows. Invoice finance is purpose-built for this model, releasing up to 90% of the value of timesheet invoices within 24 hours, so agencies always have the cash to run payroll on time regardless of when clients pay.

Finance types available

Invoice Factoring

Rate
0.5% - 2.0%
Advance
Up to 85%
Control
Factor collects from your clients

Best for: Newer or rapidly growing staffing agencies that want payroll funding, credit control, and collections managed as a single service

Invoice Discounting

Rate
0.75% - 2.5%
Advance
Up to 90%
Control
You maintain client relationships

Best for: Established staffing agencies with in-house credit control who want funding to remain confidential and client-facing processes unchanged

Selective Invoice Finance

Rate
1.0% - 3.0%
Advance
Up to 85%
Control
Choose which invoices to finance

Best for: Staffing businesses with a small number of large employer clients whose invoices are high-value and slow to settle

Common challenges

Eligibility

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Market context

The UK staffing industry places over one million temporary workers every day, generating around £42 billion in annual turnover across industrial, commercial, healthcare, and professional sectors. The Recruitment and Employment Confederation (REC) reports that cash flow and payroll funding are the most commonly cited operational challenges for staffing agencies, particularly those growing rapidly into new sectors or client accounts.

Frequently asked questions

Is staffing invoice finance different from recruitment invoice finance?
The terms are often used interchangeably, but staffing finance typically refers specifically to businesses supplying temporary or contract workers on a volume basis — such as industrial, warehousing, or healthcare staffing — while recruitment finance is more commonly associated with permanent placement fees. The financial structure is similar, but staffing finance providers often include payroll processing as an optional add-on service.
Can my invoice finance facility include payroll processing?
Many specialist staffing finance providers offer combined payroll and funding services, where they process your worker payroll directly and simultaneously fund the related client invoices. This simplifies administration considerably and ensures payroll is always funded regardless of the timing of client payments.
How does the facility handle holiday pay and other statutory worker costs?
Holiday pay, employer NIC, pension contributions, and similar costs are typically included in the invoice values you raise to clients (as part of the margin on the worker rate), meaning the invoice finance facility funds the full invoice including these elements. Your provider will want to understand your margin structure to assess average invoice values accurately.
What if a client disputes a timesheet after I have already drawn against the invoice?
Timesheet disputes are one of the risks that staffing lenders specifically assess. Under a recourse facility, you would be responsible for repaying the advance on any disputed invoice. Under a non-recourse or bad debt protection policy, insolvency of the client is covered, but disputes over the work itself typically are not — making robust timesheet sign-off processes important.
Can a staffing agency that is less than one year old access invoice finance?
Yes — some specialist staffing finance providers will consider startup or early-stage agencies, particularly if the founders have a track record in recruitment and the client base consists of creditworthy businesses. The facility will typically start smaller and grow as the agency's track record develops.

Related industries

Recruitment Professional Services

Guides and resources

What Is Invoice Discounting? Factoring vs Discounting Invoice Finance vs Business Loan Best Factoring Companies

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