Invoice finance for umbrella companies
Saturday 20th September 2025
Last updated: 23rd December 2025
-
Cash flow challenge: Umbrella companies face weekly payroll obligations and HMRC payments, while client invoices are often paid 30–60 days later.
-
Perfect for: Umbrella and payroll management companies supporting recruitment agencies or contractors needing reliable cash flow to pay staff and suppliers on time.
Novuna helps umbrella companies unlock cash tied up in unpaid invoices through flexible invoice finance solutions either through our award-winning in-house service or by comparing the market to ensure you have the best deal for your situation.
Keep your payroll running smoothly with flexible invoice finance
Umbrella companies often bridge the gap between contractors and clients paying workers weekly while waiting for client payments that can take one to two months to arrive. This creates predictable but tight cash flow cycles.
By releasing up to 90% of invoice value within 24-48 hours, this can help:
- Fund weekly payroll and PAYE on time.
-
Stay compliant with HMRC and insurance obligations.
-
Manage cash flow during client payment delays.
With invoice finance, umbrella companies can cover payroll costs confidently without taking on new debt.
How invoice finance works for umbrella companies
-
You raise an invoice to the recruitment agency or end client for contractor services.
-
Your invoice finance provider advances up to 90% of that invoice value, usually within 24-48 hours.
-
You use the funds to cover payroll, HMRC liabilities, and business expenses while awaiting client payment.
-
When the client pays the invoice, the remaining balance (minus a small service fee) is released to you.
Comparing Invoice finance, recruitment & payroll funding
-
Invoice finance releases funds from invoices raised to clients, supporting payroll and operations.
-
Recruitment funding often combines invoice finance with full back-office support and credit control.
-
Payroll funding focuses solely on wage and tax payments but can be less flexible for business growth.
Benefits of invoice finance for umbrella companies
-
Predictable cash flow: Ensure payroll, HMRC, and supplier payments stay on schedule.
-
Fast access to funds: Unlock up to 90% of invoice value within 1–2 days.
-
Scalable facility: Funding grows with your contractor base or client list.
-
Non-debt solution: Access money already owed rather than borrowing.
-
Improved compliance: Maintain HMRC and employment obligations without disruption.
How Novuna Business Cash Flow can help
We’ve supported umbrella companies and recruitment service providers across the UK with tailored invoice finance solutions that fund payroll, cover compliance, and enable sustainable growth.
Speak to our experts today and we will help you find a great fit for your situation.