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Recruitment Agency Launch Programme · Stage 5 of 10
Fund Cash Flow & the Back Office
Bridge the gap between paying temps weekly and getting paid in 30–60 days — the make-or-break of a temp desk.
How long
~1 week
You’ll have
Funded payroll and a working back office
Steps
4 steps
Resources
1 resources
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01 Step 01
Step 01
Engage invoice finance
From your first temp placement you’re cash-negative — finance is what lets you pay workers before the client pays you.
Do it yourself
- Choose a recruitment finance provider (e.g. Sonovate, Simplicity).
- Confirm they fund up to 100% of invoice value, quickly.
- Check the terms — many require no personal guarantees.
Common mistake · Launching a temp desk with no funding line and stalling on the first placement.
Time~1 week CostA % of invoice value DifficultyMedium -
02 Step 02
Step 02
Select pay-and-bill software
You need weekly payroll and client invoicing running together — spreadsheets don’t survive contact with a temp desk.
Do it yourself
- Choose pay-and-bill software (Finity, Timesheet Portal, Access).
- Confirm it handles PAYE, umbrella and CIS as you need.
- Check whether your finance provider bundles it.
Common mistake · Trying to run temp payroll and invoicing off spreadsheets.
Time~2–3 days CostFrom ~£100/mo DifficultyMedium -
03 Step 03
Step 03
Set up payroll, invoicing and margin reporting
Get the money machine running before the first temp starts, not after.
Do it yourself
- Set up weekly payroll and client invoicing.
- Turn on online timesheets to feed it.
- Switch on margin reporting so you can see profit per placement.
Common mistake · A first payroll run you improvise the night before it’s due.
Time~2 days CostIncluded above DifficultyMedium -
04 Step 04
Step 04
Model your margin and float
A busy desk with no view of its float is the classic way to run out of cash while growing.
Do it yourself
- Model your temp margin (salary cost ÷ gross profit).
- Work out how much working capital the payroll float ties up.
- Know the number before your first placement.
Common mistake · Confusing revenue with cash and getting caught short on a payroll run.
Time~2 hours CostFree DifficultyMediumResource for this step
PDFTemp margin & float model
A simple sheet to size your margin and working capital.
What you’ll have after this stage
- An invoice finance / factoring facility (temp/contract)
- Pay-and-bill and timesheet software running
- Weekly payroll, invoicing and margin reporting live
- Your temp margin and payroll float modelled