Clients paying late? How to cover payroll on time
Thursday 14th August 2025
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Cash flow challenge: My clients sometimes take weeks or months to pay, but I still need to meet payroll deadlines for my team.
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Perfect for: Business owners and finance managers who need to pay staff on time despite inconsistent client payment cycles.
Novuna helps businesses maintain cash flow to cover payroll when client payments are delayed, either through our award winning in-house service or by comparing the market to find the best fit for your needs.
We work with providers who understand the pressure of payroll obligations, help you apply, and make sure you get the right deal to keep your staff paid on time.
Why payroll can’t wait
Payroll is one of the most critical and time sensitive expenses for any business. Late client payments can leave you without enough working capital to cover wages, risking staff morale, retention, and even legal compliance.
Practical ways to cover payroll when clients pay late
- Use invoice finance to release cash early: Invoice finance allows you to unlock funds tied up in unpaid invoices, providing immediate cash flow to cover payroll.
- Negotiate staged payments with clients: Request partial payments before the full invoice is due to smooth out your cash flow.
- Maintain a payroll reserve: Set aside a portion of revenue during high-cash months to create a buffer for lean periods.
- Adjust payment terms for late-paying clients: Shortening payment terms or adding incentives for early payment can help reduce delays.
- Use payroll-specific funding: Some finance products are designed specifically to cover wage payments during cash flow gaps.
Funding options for payroll gaps
Short-term loans, revolving credit facilities, and payroll finance products can provide the liquidity needed to meet payroll deadlines while waiting for client payments.
How Novuna Business Cash Flow can help
We work with businesses across industries to tailor funding that ensures payroll is never delayed. Whether through invoice finance, payroll specific lending, or short-term cash flow solutions, we’ll help you keep your workforce paid and your business running smoothly.
