Payroll funding for recruitment startups

• Cash flow challenge: Recruitment startups needing to pay contractors weekly while clients take 30–90 days to settle invoices, creating constant cash flow pressure.
  

   

• Perfect for: New and growing recruitment agencies looking for reliable funding to manage payroll, strengthen cash flow, and focus on winning new business.

Novuna helps recruitment startups release cash from invoices and cover payroll costs quickly either through our award-winning in-house service or by comparing trusted finance providers to secure the best fit for your agency.

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What is payroll funding for recruitment startups?

Payroll funding gives recruitment agencies instant access to money owed on client invoices, allowing you to pay contractors, staff, and suppliers on time.

Rather than waiting weeks for payment, a payroll funding partner advances the cash as soon as you raise your invoice. The funder then collects payment directly from your client once it’s due. It’s a fast, flexible solution designed specifically for recruitment businesses that place temporary workers, contractors, or consultants.

How payroll funding works

1. Invoice your client for placements or contract work.
   
   

2. Receive up to 100% of the invoice value within 24-48 hours from your funding partner.
   
   

3. Pay your contractors and staff on time, keeping your reputation strong.
   
   

4. The funder collects the invoice payment when your client pays.

This creates smooth, predictable cash flow without the stress of bridging payment gaps.

Benefits of payroll funding for recruitment startups

A self-employed business loan provides funding to individuals who work for themselves without the need for an employer or long trading history.

While eligibility criteria vary between lenders, most require:

• Instant access to working capital: Eliminate long waits for invoice payments.
• Confidence to grow: Take on more clients and placements without worrying about payroll strain.
• Full back-office support: Some providers manage invoicing, timesheets, and compliance alongside funding.
• No need for trading history: Designed for startups and early-stage agencies.
• Contractor satisfaction: On-time payments help retain top talent.
• Scalable funding limits: Access more capital as your agency expands.

Payroll funding vs invoice finance for recruitment startups

Both payroll funding and invoice finance improve cash flow but they serve slightly different needs.

If your business focuses on temporary placements or contractor payroll, dedicated payroll funding keeps your workforce paid and your agency growing.

Boost your cash flow Speak to an expert

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we specialise in helping recruitment startups grow with confidence.

Speak to our experts today to help you get a great fit for your situation.