Which finance to use to hire staff

2 min read

Cost before returnThe hiring gap

Bridge the rampThe goal

3 routesCompared

The hiring cash gap

A new hire costs salary, on-costs and often recruitment from day one, but rarely generates return immediately — there is a ramp before they pay for themselves. Funding that ramp lets you hire ahead of demand rather than waiting until you can just about afford it. The finance should bridge the gap between the cost landing and the revenue arriving, then be repaid as the hire starts contributing. See how to use a loan for growth.

The three routes

Route	Best for
Short-term loan	A defined hiring plan with a known ramp
Revolving line	Phased or uncertain hiring
Invoice finance	If new staff drive invoiced B2B sales

A short-term loan suits a defined plan — hire, ramp, repay. A revolving line suits phased hiring where the timing is uncertain. Invoice finance can help if the new staff quickly generate invoiced sales, as funding then scales with the revenue they bring.

Only hire what you can service

Borrowing to hire is sound only if the hire's expected contribution comfortably covers both their cost and the finance. Model it on realistic, not best-case, ramp times, and make sure the repayments are affordable even if the hire takes longer to land than hoped — see our affordability guide and the answer on growth funding.

The Credicorp view

A short-term Credicorp business loan bridges the ramp before a hire pays for itself, keeping your cash intact while you build the team — no personal guarantee. For phased hiring, a Credicorp Flex line fits. Register to apply. Educational content, not financial advice.

Frequently asked questions

Can I use a business loan to hire staff?

Yes. A short-term loan can bridge the gap between a new hire's cost landing and the revenue they eventually bring, letting you hire ahead of demand. Repay it as the hire starts contributing, and only proceed if their expected contribution comfortably covers both their cost and the finance.

What finance suits phased hiring?

A revolving credit facility, because you can draw as each hire's costs land and repay as they start contributing, paying only for what you use. It suits uncertain timing better than a fixed loan, while invoice finance can help if the new staff quickly drive invoiced B2B sales.

How do I know if I can afford to borrow to hire?

Model the hire's expected contribution against their full cost plus the finance, using realistic ramp times rather than best-case. Ensure the repayments are affordable even if the hire takes longer to land than hoped. If the numbers only work on optimistic assumptions, reconsider the timing.