Payroll finance - how it works and when to use it

• Cash flow challenge: I need to pay staff and contractors on time, but client invoices take weeks or months to be paid, leaving me with cash flow gaps.

• Perfect for: Recruitment agencies, SMEs, and growing businesses that have high payroll commitments but face late client payments.

Novuna helps businesses cover payroll reliably with funding solutions tailored to your sector. We compare providers, support your application, and ensure you get the right deal to protect staff and business continuity.

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What is payroll finance?

Payroll finance is a specialist funding solution that provides cash to cover staff and contractor wages when client payments are delayed. It bridges the gap between weekly or monthly payroll and the time it takes for invoices to be settled.

How payroll finance works

• Your business raises invoices to clients

• A finance provider advances most of the invoice value immediately

• You use the funds to pay staff and contractors on time

• The provider collects payment from clients or is repaid when invoices clear

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Benefits of payroll finance

• Ensures staff and contractors are always paid on time

• Protects relationships with employees and clients

• Provides flexibility to take on more contracts without worrying about cash flow

• Can grow in line with your sales and payroll needs

When to use payroll finance

Payroll finance is particularly useful when:

• You’re scaling and taking on more staff

• Clients have extended payment terms (30–90 days)

• You supply temporary workers and face high weekly payroll costs

• Seasonal demand increases payroll pressure

How Novuna Business Cash Flow helps

Novuna has extensive experience in payroll finance, especially for recruitment agencies and SMEs. Whether you need short-term support or an ongoing facility, we’ll match you with the right provider to keep staff paid and your business growing.