What Zodeq does

Zodeq is a UK-based specialist financial services provider founded in September 2016 in Chester, focused exclusively on the recruitment sector. The company offers invoice finance (advancing 80-90% of invoice value within 24-48 hours), invoice discounting, and bad debt protection (in partnership with Atradius). These financing products are bundled with Zodeq 360, a comprehensive back office support suite comprising six integrated modules: payroll processing, HMRC administration management, invoicing, credit control, timesheet processing, and pension provision. The product architecture supports three primary vertical segments — healthcare recruitment, education recruitment, and technology recruitment — alongside specialist support for RPO/MSP/vendor businesses.

The company operates on a transaction-fee revenue model, charging discount charges, service fees, and one-off setup fees on financed invoices, with additional professional services fees for standalone Zodeq 360 engagements. Its technology platform is built around the Dancerace-powered client portal (e3.zodeq.dancerace-apps.com) and integrates with sector-standard back office systems including Tradeshift, 24/7, RSM InTime, and InPay, as well as CRM systems used by tech recruitment clients.

Zodeq serves 350+ UK SMB recruitment agency clients from offices in Chester and Milton Keynes (opened January 2024 following the late-2023 acquisition of Pulse Outsource). Since October 2022, Zodeq has operated as a wholly-owned subsidiary of the Praetura Group, which provides access to £400M+ of combined loan book capacity through Barclays and NatWest securitisation facilities. Zodeq generates scale milestones through disclosed metrics including £50M+ of working capital deployed and £500M+ of cumulative invoices financed to recruitment businesses across the UK.

Name

Zodeq

Legal name

Zodeq

Website

https://zodeq.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

11–50 employees

Short description

Zodeq is a UK specialist invoice finance and back office support provider serving 350+ recruitment agencies across healthcare, education, technology, and general staffing sectors. Founded 2016, Chester-headquartered, and a Praetura Group subsidiary.

Ownership category

akta.pro rank

Product category

Invoice Finance

NAICS

Custom Computer Programming Services (541511)

SIC

Finance Services (6199)

akta.pro primary industry

BNPL Servicing, Billing & Collections (FSAKACAH)

akta.pro secondary industry

E-Invoicing & Invoice Presentment (B2B/B2G) (FSAMAJAF)

Keywords

• Invoice finance
• Recruitment finance
• Back office support
• Invoice discounting
• Cash flow solutions

Headquarters

HQ city

Chester

HQ country

United Kingdom

HQ region

Europe

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. Invoice Finance: Provides cash advances against unpaid invoices (typically 80-90% of invoice value). Charges include service fee, discount charge, and one-time setup fee. Revenue scales with client turnover as facility grows with business.
2. Invoice Discounting: Similar to invoice finance but client manages own credit control. Cash advance against invoices without disclosure to customers.
3. Finance & Back Office Support: Combined invoice finance with comprehensive back office administrative services including payroll, invoicing, credit control.
4. Bad Debt Protection: Credit protection service partnered with Atradius. Available as standard with invoice finance and invoice discounting packages. Protects against client defaults.
5. Zodeq 360 Standalone: Back office support services offered independently of financing. Includes payroll processing, timesheet management, credit control, HMRC administration, pension provision.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels7 records

Core offering

Zodeq provides invoice finance and invoice discounting services, advancing typically 80-90% of invoice values to recruitment agencies within 24-48 hours. The company also offers Zodeq 360, a comprehensive back office support suite covering payroll, HMRC administration, invoicing, credit control, timesheet processing, and pension provision, specifically designed for UK recruitment agencies.

Product overview

Zodeq operates as a multi-product financial services company offering invoice finance as its core product alongside a comprehensive back office support platform called Zodeq 360. The product architecture consists of three tiers: core invoice finance and invoice discounting services; the Zodeq 360 platform containing six integrated back office modules (Payroll, HMRC Administration, Invoicing, Credit Control, Timesheet Processing, and Pension Provision); and sector-specific variants tailored for healthcare, education, and technology recruitment industries. Additional offerings include Bad Debt Protection, Finance & Back Office Support bundles, and a PAYE administration service addressing regulatory changes. The company serves UK recruitment agencies from offices in Chester and Milton Keynes, with funding capabilities enhanced by Praetura Group investment.

Differentiator

Problem solved

Functional benefit

Brands

• Zodeq 360: Comprehensive back office support services for recruiters, including payroll, HMRC administration, invoicing, timesheet processing, credit control, and pension provision.

Products and services

• Invoice Finance Primary financing product allowing businesses to release a proportion of cash tied up in unpaid invoices immediately upon invoice creation, typically advancing 80-90% of invoice value within 24-48 hours. Designed for UK recruitment agencies facing cash flow gaps between payroll obligations and client payment terms.
• Invoice Discounting Variant of invoice finance where businesses manage their own credit control while receiving immediate cash advance against invoices. Customers may remain unaware of the finance arrangement, providing discreet working capital to recruitment agencies.
• Zodeq 360 Comprehensive back office support suite for recruitment agencies comprising six integrated modules: Payroll, HMRC Administration Management, Invoicing, Credit Control, Timesheet Processing, and Pension Provision. Designed to reduce administrative burden on start-up and established recruitment businesses.
• Bad Debt Protection Risk protection service that ensures businesses retain funds advanced against invoices if clients become unable to pay. Includes customer credit checks and debt collection management through partnership with Atradius credit insurers. Available as standard with invoice finance and invoice discounting packages.
• Finance & Back Office Support Combined package pairing flexible invoice finance with Zodeq 360 back office services, providing single-source solution for cash flow management and administrative support for recruitment agencies.
• Healthcare Recruitment Finance Specialized invoice finance for healthcare recruiters supporting NHS, private hospitals, local authorities, and care homes. Features include extended payment terms, dummy invoicing acceptance, credit protection, RPO/neutral vendor funding, and integration with Tradeshift and 24/7 portals.
• Education Recruitment Finance Invoice finance tailored for education sector recruiters covering summer months funding gaps, LEA and private school financing, flexible payment methods including cheque, international credit control, and multi-currency facilities. Extended funding (90 to 150 days) to accommodate education sector payment cycles.
• Tech Recruitment Finance Invoice finance for tech recruiters offering cross-border credit protection, multi-currency facilities (GBP, EUR, USD), international credit control, API integration with CRM systems, weekly/monthly consolidated invoicing, and support for RPO/MSP/vendor business models.
• Zodeq 360 PAYE Service PAYE administration service addressing April 2026 Joint and Several Liability regulations for umbrella companies and recruitment agencies. Provides single payroll solution with clear PAYE processing and reporting to reduce compliance risk.

Quantifiable outcome

• 41% year-on-year growth, ranked 3rd for overall growth across the market (Spark's Annual Debenture Report, March 2025)
• +3 more outcomes

Named customers13 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature3 records

Partnerships

Nine partnerships are on record, tiered minor and core.

• Age UKminorOthers · 1 January 2025Praetura Lending Group supporting Age UK throughout 2025 as charity partner. Zodeq team participating in fundraising activities.
• Elite LeaderscoreOthers · 1 October 2024Joined as funder of choice in October 2024. Access to select group of recruitment business leaders focused on industry improvement and collaboration.
• Pulse OutsourcecoreStrategic or Co-development Partner · 1 October 2023Acquired in late 2023. Acquisition expanded team and led to opening of Milton Keynes office in January 2024.
• AtradiuscoreTechnology or IntegrationPartnership with world-leading credit insurer for bad debt protection services. Provides institutional-grade credit protection as standard to all invoice finance and invoice discounting clients.
• UK FinancecoreOthersUK Finance member for Invoice Finance and Asset Based Lending. Adheres to the Code of Conduct for invoice transfers.
• APSCo (Association of Professional Staffing Companies)coreOthersAssociation member demonstrating commitment to professional standards in the recruitment sector.
• West Cheshire & North Wales Chamber of CommercecoreOthersStrategic member since 2017. Youth Chamber Sponsor. Annual sponsor of 'Start Up Business of the Year' award at Recognition Awards.
• TEAM Service ProviderminorOthersTEAM Service Provider member since May 2019.
• DanceracecoreTechnology or IntegrationTechnology platform provider for client portal access. Links to e3.zodeq.dancerace-apps.com and www.e3direct.com provide client access to Zodeq services.

Scale indicators9 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Bibby Financial Services: One of the UK's largest invoice finance providers with a dedicated recruitment sector team. Directly comparable as a UK-based invoice finance specialist serving recruitment agencies, and the prior employer of Zodeq's Business Development Manager Jim McDonnell.
• WeDo Finance: UK-based invoice finance provider serving small businesses, including recruitment agencies. Jim McDonnell spent nearly a decade at WeDo Finance prior to joining Zodeq, highlighting direct competitive overlap in recruitment sector invoice finance.
• MarketFinance: UK-based alternative finance provider offering invoice finance, business loans, and lines of credit to SMBs. Directly comparable as a UK invoice finance competitor targeting similar small and mid-sized business segments, including recruitment agencies.
• Funding Circle: UK-listed SMB lending platform offering invoice finance, business loans, and lines of credit. Comparable as a UK alternative finance provider competing for SMB working capital needs, including the recruitment agency segment Zodeq serves.
• Nucleus Commercial Finance: UK-based invoice finance and asset-based lending provider focused on SMBs. Directly comparable in offering invoice discounting, factoring, and commercial finance solutions to UK small businesses, including the recruitment sector.

Others

• Praetura Commercial Finance: Sister company within the Praetura Lending Group providing asset-based and commercial finance. While not a direct competitor (same parent group), it operates in adjacent invoice/asset finance space and shares capital infrastructure (Barclays/NatWest securitisation).

Broad incumbents

• Aldermore Invoice Finance: Established UK challenger bank offering invoice finance and asset-based lending to SMBs. Comparable as a broader invoice finance provider competing for similar SMB clients, though not specialising exclusively in recruitment.
• Skipton Business Finance: UK invoice finance and asset-based lending provider, part of Skipton Building Society Group. Directly comparable in offering invoice discounting and factoring to UK SMBs, including those in the recruitment sector.
• Close Brothers Invoice Finance: Established UK invoice finance provider within Close Brothers Group, offering factoring, invoice discounting, and asset-based lending. Comparable in providing invoice finance to UK SMBs across multiple sectors including recruitment.
• Hitachi Capital Invoice Finance (Lennox Finance): UK invoice finance provider (formerly Hitachi Capital Invoice Finance, rebranded as Lennox Finance). Comparable as an established invoice discounting and factoring provider serving UK SMBs in multiple sectors.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/zodeq
• Xx.com/ZodeqUK

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Zodeq