TL;DR: Recruitment agencies pay contractors and temps weekly but invoice clients on 30–60 day terms. This creates a constant cash flow gap that grows as you place more people. Invoice finance lets you fund payroll from invoices you have already raised.
The Cash Flow Challenge in Recruitment
Staffing and recruitment is one of the most cash-intensive industries. You pay your contractors and temporary staff every week or fortnight, but your clients pay invoices on 30, 45, or 60-day terms. The more people you place, the bigger the gap between what you pay out and what you receive.
This timing mismatch can limit your ability to take on new placements, even when demand is strong.
How Invoice Finance Solves the Recruitment Cash Flow Gap
With Fundtap, you fund the invoices you have already sent to clients and receive the cash within hours. Use it to cover payroll, manage growth, and take on more placements without waiting for clients to pay.
- Fund weekly payroll from invoices issued to clients
- Scale placements without cash flow constraints
- No whole-ledger requirement — fund only the invoices you need
- Confidential — your clients never know
Why Recruitment Agencies Choose Fundtap
- Funded within hours — critical for meeting weekly payroll
- No lock-in contracts or minimum volumes
- Single fee from 4% per invoice
- Integrates with Xero, MYOB, and QuickBooks
- Scales automatically as your placements grow
Common Scenario
You have 15 contractors on assignment billing $200,000 per month to three clients. Payroll is $160,000 per month, paid weekly. Your clients pay on 45-day terms. Without invoice finance, you need $240,000 in working capital to cover the gap. With Fundtap, you fund each week’s invoices and cover payroll without strain.
Yes. Recruitment and staffing is one of the most common use cases for invoice finance due to the mismatch between weekly contractor payments and monthly client billing.
You fund the invoices you have issued to clients and receive cash within hours. This cash can be used to cover contractor and temp payroll while waiting for client payments.
No. Fundtap is completely confidential. Your clients continue paying you as normal with no notification.
No. Fundtap has no minimum volumes or minimum invoice values. Fund as many or as few invoices as you need.
Invoice finance works for any B2B invoices. It is most commonly used for temporary and contract staffing where the payroll gap is ongoing, but it works for any invoiced recruitment service.