£60,000 Facility Bridged a Payroll Gap on a New Contract Win
Working capital finance can help recruitment and staffing businesses meet payroll and other operating costs while waiting for client invoices to be paid. Enness Global works with established businesses requiring short-term liquidity to support new contracts, growth and temporary cash flow gaps where expenditure needs to be met before corresponding revenue is received.
Business finance is subject to status, lender criteria and individual circumstances. Terms and availability will vary.
Why Did The Recruitment Agency Need Working Capital Finance?
The recruitment agency had secured a significant new contract that required it to onboard and pay a larger temporary workforce almost immediately. However, existing clients were operating on 60-day payment terms, creating a temporary gap between the agency's increased payroll commitments and the point at which the associated revenue would be received.
The new contract represented an opportunity for the business to grow, but it also created an immediate cash flow requirement. Temporary workers needed to be paid according to the agency's normal payroll cycle, while the income generated from the new contract would arrive later through the client's agreed payment terms.
The challenge was therefore one of timing rather than a lack of underlying business activity. The agency had secured the work, but needed additional liquidity to fund the workforce before the associated client payments came through.
This type of timing difference can be particularly relevant to recruitment and staffing businesses, where payroll commitments can arise well before client invoices are settled.
The August 2026 KPMG and REC UK Report on Jobs reported that temporary vacancies increased for the first time in two years, while temporary staff billings continued to rise.
How Did Enness Structure The Payroll Funding?
Enness arranged a facility around the recruitment agency's payroll cycle and expected client receipts rather than treating the requirement as a generic working capital request.
A circa £60,000 facility was structured to help bridge the temporary gap between the agency's immediate payroll commitments and the point at which revenue from the new contract would begin moving through its normal billing cycle.
The structure was intended to provide sufficient liquidity for the agency to increase its temporary workforce while continuing to meet its existing payroll commitments.
Enness works with lenders offering working capital facilities, with the availability and structure of finance depending on the business, funding requirement and lender criteria.
All finance remains subject to status and lender approval.
What Was The Outcome For The Recruitment Agency?
The circa £60,000 facility was put in place within days, allowing the agency to staff the new contract while continuing to meet payroll commitments across its existing business.
The funding addressed the timing difference between the immediate cost of expanding the temporary workforce and the point at which client payments were expected to arrive.
The case demonstrates how working capital finance can support an established recruitment business when winning new work creates an immediate increase in operating costs. Securing a contract can be positive for a business, but the associated payroll and other expenditure may need to be funded before the resulting revenue reaches the business.
Enness has also structured working capital solutions for recruitment businesses where capital has been tied up in outstanding invoices, payroll commitments and seasonal requirements.
What Were The Risks And What Could Have Gone Differently?
The facility remained subject to lender assessment, approval and completion. Another lender could have taken a different view of the agency's existing cash flow, client payment terms, new contract or ability to service additional borrowing.
The timing of client receipts was also important. If payments had been delayed beyond the expected billing cycle, the agency could have needed to fund payroll commitments for longer than originally anticipated.
Taking on additional borrowing creates repayment obligations and associated financing costs. The suitability of a working capital facility depends on factors including cash flow, existing commitments, profitability, expected client receipts and the reliability of the underlying contract.
The successful completion of this case does not mean the same funding amount, structure or timeframe will be available to another recruitment business. Finance is subject to status and lender criteria.
Important Information
This case study describes a specific completed transaction and is provided for market and illustrative purposes only. Individual circumstances differ, and the availability, amount, cost and terms of business finance will depend on the applicant, lender criteria and proposed transaction.
Finance is subject to status and lender approval. Past transactions are not indicative of future availability or outcomes.
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Frequently asked questions
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Let's talk nowCan Recruitment Agencies Use Working Capital Finance For Payroll?
Potentially. Working capital finance can provide liquidity for operational expenses such as payroll where a recruitment or staffing company needs to pay workers before receiving payment from clients. Eligibility depends on the business, cash flow and lender criteria.
