Contractor payroll and funding
Contractor funding and payment options
Flexible ways to fund your contract workforce. Whether you are a growing startup, a recently acquired business or an established enterprise, we will help you agree a practical arrangement for engaging and paying contractors.
Established in 2010. International contract recruitment. Weekly approved timesheets.
Funding options
Three ways to fund your contractors
Every business has a different financial structure. We review the proposed contracting entity, expected contractor costs and payment requirements before agreeing an arrangement.
Part of our Contract Recruitment service.
Standard credit terms
For businesses with an approved credit facility. We pay contractors against approved timesheets and invoice you on agreed terms. Credit limits and payment terms are agreed before the assignment begins.
Group company arrangements
Where appropriate, we can assess another established legal entity within your group for contracting and credit approval. The contracting, invoicing and payment responsibilities must be agreed before work starts. Group membership alone does not guarantee approval.
Rolling payment on account
Where conventional credit is unavailable or payment terms need a different approach, you fund an agreed amount in advance. We allocate the funds to your account and reconcile charges against approved work.
How payment on account worksHow it works
How rolling payment on account works
Cleared funds must be received before any work starts, including remote work. A remittance advice or payment instruction is not sufficient.
Agree the expected costs
We use the agreed client charge, number of contractors and scheduled working days. If a contractor is expected to work three days a week, the estimate reflects three days.
Fund the initial four weeks
Cleared funds must be received before any contractor starts work. Sending a remittance advice or confirming that payment has been instructed is not sufficient.
Approve weekly timesheets
As the client, you approve the contractor’s weekly timesheet to confirm the days worked. We use your approved records to apply charges to your account.
Replenish for ongoing work
Our projects run for more than four weeks. Once the project has started, we issue the next four-week funding invoice at week two, with seven-day payment terms. Funds must clear by week three, when we have made the contractor payout. We then invoice every four weeks on the same seven-day terms to maintain funding for continued service.
Reconcile the account
You can request a breakdown of funds received, approved work, charges applied and the remaining balance. At the end of the assignment, we complete a final reconciliation under the agreed terms.
The week-two invoice is additional to the initial four-week payment. It falls due in week three, after the contractor payout. In the illustration below, three weeks of approved work have then been charged, so the further four-week payment leaves five weeks of estimated unused funding. Subsequent four-week funding invoices are issued at weeks six, ten and so on, each on seven-day payment terms.
Changes to planned working days, leave or the project end date are reviewed against the remaining work and agreed terms. The week-two invoice does not create a free trial or remove notice terms or charges for work already performed.
Plan ahead
Estimate your upfront funding
Estimate your weekly charge and the initial four-week payment before work starts. This illustration does not approve credit, issue a quote, reserve a contractor, collect payment or create a contract.
For mixed rates, different schedules, hourly work or another currency, speak to our team for an account-specific calculation.
The interactive calculator is unavailable until JavaScript has loaded. The default worked example below remains available. Contact our team for a different estimate.
Your funding illustration
Headline amounts exclude VAT. Four weeks of funding must clear before work starts.
- Estimated weekly charge
- £3,000.00
- 4 week pre-payment
- £12,000.00
- VAT
Tick to show the amount including VAT beneath each estimate. The headline amounts stay excluding VAT.
Illustrative estimates only. Headline amounts exclude VAT and separately agreed charges. Select VAT applies to show an additional estimate including 20% VAT beneath each amount. The daily charge is the full client charge, including Consortia's margin. This example assumes a continuing assignment, identical rates and schedules, and all scheduled work being approved. Actual funding, replenishment and settlement depend on agreed charges, approved work, the remaining balance and contractual terms. This is not a quotation or credit approval.
Discuss a different rate or working patternHow the rolling balance works
Assuming exactly the scheduled work is approved and charged, with no separately agreed charges. We invoice for the next four weeks at week two, with seven-day payment terms. Funds clear by week three, when we have made the contractor payout. We then invoice every four weeks on the same seven-day terms. Headline amounts exclude VAT; tick VAT applies to see amounts including 20% VAT underneath.
Before work starts
- Additional funds received
- £12,000.00
- Charges applied in this step
- £0.00
- Estimated unused balance
- £12,000.00
End of week 1
- Additional funds received
- £0.00
- Charges applied in this step
- £3,000.00
- Estimated unused balance
- £9,000.00
End of week 2, invoice issued
- Additional funds received
- £0.00
- Charges applied in this step
- £3,000.00
- Estimated unused balance
- £6,000.00
Week 3 payment received
- Additional funds received
- £12,000.00
- Charges applied in this step
- £3,000.00
- Estimated unused balance
- £15,000.00
At the final illustrated point: total funds received £24,000.00, cumulative charges £9,000.00, excluding VAT. Unused balance is an explanatory allocation after assumed charges, not a verified bank balance or a live account ledger.
Different businesses, practical arrangements
Who this can help
- Investment-backed startups with cash available but limited filed accounts.
- Newly formed or recently acquired businesses establishing their trading history.
- Established organisations whose requested payment terms need an alternative funding structure.
- Teams engaging contractors for a defined number of days each week.
Availability depends on the assignment, contracting structure and agreed terms. We will discuss the practical options with you before work starts.
Account reconciliation
Visibility from the first timesheet to final reconciliation
As the client, you approve the contractor’s weekly timesheets so your account reflects the work you have authorised. We can provide a statement showing funds received, approved work, charges applied and the remaining balance. It should distinguish actual approved charges from estimates and pending or disputed time, so forecast work is not presented as money already used.
Changes to working days, rates, contractor numbers or assignment duration are reviewed with you so the funding requirement stays aligned with the work planned. Disputed or unapproved time is handled through the agreed approval and dispute process.
At the end of the assignment, we reconcile unused funds against outstanding charges and any other amounts due under the agreement. Any remaining balance is returned in accordance with the agreed terms.
FAQs
Your funding questions, answered
Why do you carry out credit checks?
Under standard credit terms, Consortia funds contractor payments before receiving payment from the client. We assess the proposed legal entity before agreeing a credit facility and payment terms. Limited filed accounts can affect the available credit even where a business has investment or cash available.
Can another company in our group contract with Consortia?
We can assess an appropriate group entity where the proposed arrangement is suitable. Its credit position and the contracting, invoicing and payment responsibilities must be agreed. A group relationship does not automatically make another entity liable or guarantee credit approval.
Is payment on account only for startups or companies with poor credit?
No. It can also support established organisations where conventional credit terms are unsuitable, including some extended payment requirements. We agree the arrangement based on the proposed assignment and financial structure.
How much do we pay before a contractor starts?
The standard illustration is four weeks of expected client charges, based on the number of contractors and their scheduled working days. A three-day week is estimated using three days. We agree the actual funding requirement and any applicable VAT or other charges before the start.
When do you invoice for the next four weeks?
Once your project has started, we issue a four-week funding invoice at week two, payable within seven days. Funds must clear by week three, when we have made the contractor payout. We then invoice every four weeks on seven-day payment terms. After three weeks of approved work have been charged, the illustrated payment leaves five weeks of estimated unused funding.
Can work start once we have sent the payment confirmation?
Under payment on account, the required funds must have cleared before any work starts. A remittance advice or payment instruction is not enough. We confirm the funding position before the agreed start.
How do we know what has been used?
As the client, you approve the contractor’s weekly timesheets. You can request a breakdown of funds received, approved work, charges applied and the remaining balance. The website does not provide a live account dashboard.
What if fewer days are worked, the contractor changes or the project ends early?
We reconcile the account against approved activity and review future funding against the revised requirement. Notice, cancellation, replacement arrangements and any other amounts due follow the signed agreement. The week-two invoice is not a free trial or a promise of cancellation without charge.
What happens to unused funds at the end?
After final reconciliation, unused funds are settled against outstanding charges and any other amounts due under the agreement. Any remaining balance is returned in accordance with the agreed terms.
Is this an additional fee or a deposit?
Payment on account funds the agreed assignment charges in advance; it should not be described as an extra recruitment fee or a non-refundable security deposit. Charges and final settlement are governed by your agreement.
Are the funds legally ring-fenced or protected?
Funds are allocated to your account and reconciled against approved work. We can explain the account arrangements and applicable terms before you proceed. Do not interpret this page as a promise of legal segregation, trust protection, deposit insurance or protection from insolvency.
Does the funding route determine IR35 status?
No. Funding and tax status are separate matters. The appropriate status assessment and contracting arrangements must be considered for the assignment. Payment on account does not make an engagement outside IR35 or remove applicable obligations. This separation is consistent with HMRC's off-payroll working guidance.
Can this support international or part-time assignments?
Discuss the proposed country, currency, legal entity and working schedule with the team. The calculator illustrates GBP daily charges with a shared schedule; it does not establish local payroll, tax, currency or legal terms for an international assignment.
Speak to our contract team
Let’s get your project moving.
Tell us about your contractor requirements and we will help establish the most suitable payment arrangement.