Invoice purchasing for consulting companies: The real cost of long payment times – and how to calculate it

Consulting companies often grow rapidly. Occupancy is high, clients are satisfied, and billing is rolling in. Yet many consulting companies end up in the same situation: operations are going well on paper, but liquidity is not enough in practice.

The reason is almost always the same — long payment times.

In this guide, we'll go over why payment times are a bigger problem than many people think, how to calculate the real cost, and how invoice purchasing can be used as a strategic tool to grow faster and more securely.

The consulting company's hidden challenge: revenue coming in – but costs now

Consulting companies are often staff-intensive. This means:

Salaries must be paid every month
social security contributions and taxes must be paid
licenses, tools and sub-consultants cost directly
Recruitment and onboarding require capital

At the same time, many customers pay in 30, 45, or even 60 days.

The result is a gap between money earned and money available. This is where liquidity starts to tighten — even when everything is going well.

Calculate the cost: how much capital is tied up in your accounts receivable

Here is a simple model that shows how much money is stuck waiting for customer payment:

Example

A consulting company with 7 consultants invoices an average of SEK 140,000 per consultant per month.

Total billing:
980,000 SEK/month

Payment term:
60 days (2 months)

Capital tied up:
980,000 × 2 = 1,960,000 SEK

This means that almost 2 million SEK are locked in accounts receivable — money that has already been earned, but cannot be used.

The cost of growth: how much tied-up capital slows down your expansion

The amount of capital tied up directly affects how quickly the company can grow.

Here is a simple rule of thumb:

If a new consultant costs 90,000–110,000 SEK/month in total salary costs, 1.96 million in tied-up capital means that the company in practice "loses" the opportunity to:

hire 18–20 months of consulting
take on bigger projects
scale up in line with demand

This is where invoice purchasing becomes a strategic tool — not a stopgap solution.

When invoice purchasing is an advantage for consulting companies

Invoice purchasing is not just about getting money faster. For consulting companies, it is often a way to:

Create a stable cash flow

You don't have to depend on your customers' payment routines and get smoother finances.

Paying salaries without stress

Personnel costs are the consulting company's largest expense. With invoice purchasing, you can plan with confidence.

Grow faster

When capital is released immediately, you can:

take on bigger tasks
hire in line with incoming orders
bring in sub-consultants without risking liquidity

Reduce administration

You avoid reminders, monitoring and handling late payments.

Avoid taking out loans in your business

You use capital you have already earned — without lending money to the company.

Customer CAE: IT consulting company that wants to grow – but is stopped by payment deadlines

A consulting company with 8 consultants invoices:
SEK 140,000 per consultant/month
total 1,120,000 SEK/month
Customers pay in 60 days.

Capital tied up:
1,120,000 × 2 = 2,240,000 SEK

The company wants to take on a larger project and needs to bring in two new consultants immediately. But the liquidity is not enough.

The solution

The company chooses to sell invoices via Finans Partner.

The result

salaries are paid on time
recruitment can take place directly
the company can take on larger projects
less time is spent on administration
cash flow becomes stable and predictable

Instead of having over 2 million SEK locked up in accounts receivable, the company can use the capital in operations — where it is beneficial.

Summary: Invoice purchasing helps consulting companies grow on their own terms

For consulting firms, liquidity is one of the most important growth factors. Long payment times can slow expansion, create unnecessary stress, and make you turn down assignments you really want to take.

With invoice purchasing, the consulting company can:

release capital immediately
pay salaries and fees on time
take on bigger projects
hire faster
grow without a bank loan

It's a smart way to create stability and control — especially in an industry where time is money and growth often happens quickly.

Do you want to know how invoice purchasing can strengthen your consulting company?

Contact us at Finans Partner — we will help you find the best solution for your business.