How can recruitment agencies improve cash flow?

Invoice temps weekly from approved timesheets, credit-check clients, set credit limits and chase overdue invoices on a strict automated schedule.

Can I charge interest on late placement fees?

Yes. Clients are businesses, so statutory interest at base rate plus 8% and fixed compensation apply unless your terms say otherwise.

What if a client disputes a permanent fee?

Refer to your signed terms and your record of the introduction. Clear records of when and how the candidate was introduced resolve most disputes.

Should I stop supplying temps to a client who pays late?

Pausing new placements when a client is seriously overdue or over its credit limit protects your payroll. Follow the notice terms in your agreement.

Is invoice finance the answer for recruitment cash flow?

It can help fund payroll, but it has a cost. Faster invoicing and consistent chasing reduce how much finance you need.

Can AutoSettle chase weekly temp invoices?

Yes. AutoSettle watches every invoice in Xero, QuickBooks or Sage and sends reminders on your schedule, however frequently you bill.

How quickly should a recruitment agency chase an overdue invoice?

Start with a reminder a few days before the due date, follow up on the due date itself, and send a firmer notice within a week of it becoming overdue. Because temp payroll keeps running every week, waiting a month before chasing creates a cash gap that is hard to close.

What credit limit should I give a new recruitment client?

Base it on the client's credit report, trading history and expected weekly billing. A common approach is to cover a few weeks of expected temp billing at first, then review the limit after three months of on-time payment.

Credit control for recruitment agencies

Credit control for recruitment agencies means credit-checking clients before placing candidates, getting signed terms of business, invoicing temp hours weekly from approved timesheets, and chasing permanent fees on strict terms. Because agencies pay temporary workers before clients pay them, fast, consistent chasing is essential to avoid a payroll cash gap.

Recruitment has one of the harshest cash flow shapes of any service business. Temporary workers are paid weekly, but clients pay invoices on 30, 45 or even 60-day terms. Every new temp placement widens the gap between cash out and cash in.

Permanent placement fees bring their own problems: large one-off invoices, rebate periods and disputes over whether a candidate was introduced by you. This guide explains how UK recruitment businesses can tighten credit control on both sides of the business.

Temp payroll creates a cash gap, so invoice weekly and chase fast.

Credit-check clients and set limits before the first placement.

Signed terms of business are essential for enforcing fees.

Invoice permanent fees on the start date and diary the rebate period.

Pause new placements when a client breaches its credit limit.