Payroll finance Ireland: pay staff before clients pay

Payroll finance is funding that lets a staffing company pay its workers before its clients pay their invoices. In Ireland it is usually a form of invoice finance: the provider advances most of each client invoice, often within a day of invoicing (not guaranteed), and the agency uses that cash to meet payroll. It is also called payroll funding or temp payroll finance.

Your temps work the week, the client approves timesheets and you raise the invoice. The provider advances an agreed share, which Bibby Financial Services Ireland puts at up to 90%, so you can pay temps on the usual pay day. When the client pays on its 30 to 90 day terms, you receive the balance less fees. Funding grows as placements grow.

Not as a separate product, as far as we can see from Irish providers’ published information. Payroll finance advances cash against client invoices, and you use that cash for net pay and payroll taxes. If a Revenue bill is the problem, talk to Revenue early about a phased payment arrangement, or consider a business loan to spread the tax bill, which our panel may be able to help with.

Since 1 January 2026, eligible employees aged 23 to 60 earning €20,000 or more, without a payroll pension, are enrolled in MyFutureFund. Employers pay 1.5% of gross pay for the first three years, rising to 3%, 4.5% and then 6% from year ten, on earnings up to €80,000. Contributions are paid when wages are paid, so they add directly to each payroll.

The national minimum wage for workers aged 20 and over rose to €14.15 an hour from 1 January 2026. Agencies paying temps at or near that rate saw payroll and employer PRSI rise, and needed client charge rates to keep up. Citizens Information notes a planned rise to €14.94 from 1 January 2027, which takes effect when the Minister signs the order.

Since 2019, Revenue requires employers to report each payroll on or before the pay date, so Revenue sees pay in real time. The monthly statement then sets the PAYE, PRSI and USC due, payable by the 14th, or the 23rd if you file and pay through ROS. Cash must be ready for both net pay and the tax that follows.

The mechanics are similar: funding is advanced against invoices to the end client while contractors or temps are paid. The difference is usually employment status and payroll set-up. Providers look closely at who employs the workers, how pay and taxes are run, and the contracts, so make sure your payroll arrangements are compliant before you apply.

It is usually priced like invoice finance: a discount charge on the money advanced, plus a service fee for the facility, and extra for payroll services. Irish providers do not publish standard prices. Ask for the expected annual cost based on your weekly payroll, client spread and payment terms, and compare at least two quotes.

Start-ups registered as limited companies in Ireland can apply. Most lenders look for some trading history, so options may be fewer for a new company. New agencies can also speak to their Local Enterprise Office about supports and to Microfinance Ireland, and can ask specialist recruitment finance providers directly whether they fund early-stage agencies.

Payroll finance is a specialist product, offered directly by specialist recruitment finance providers. Our panel covers working capital loans and tax-bill funding through a business loan, which some employers use for a short gap. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead.