Recruitment (Temporary & Permanent) Is A Preferred Industry In The Invoice Financing Industry
A Factoring client can typically raise up to 90% (and even as high as 100%) of the value of its unpaid invoices with Factoring, usually within 48 hours.
A healthy Cash flow is always a concern for young and growing recruitment companies. Agency workers expect to get paid on time but customers will normally expect to pay in 30, 60 or 90 days. Recruitment Factoring provides a great solution for a specific problem; the gap generated between invoicing your customers and receiving their payment.Recruitment Factoring allows a recruitment agency to release up to 100% of working capital tied up in outstanding debtors immediately. It is designed for new start businesses as well as larger well-established companies. It includes finance, credit management and optional bolt on services like credit protection (to reduce the risk of bad debts) and payroll management (releasing management’s time to focus on other more productive activities such as selling and the developing new business).
This is an ideal solution for companies that are growing quickly, have seasonal work, or just need extra cash flow and is a key financial strategy for many recruitment companies. Recruitment Factoring takes away all the difficulties of chasing money and helps to remove the worry of not knowing when you might get paid.
Invoice Factoring for Manpower businesses is a fast, painless way to improve your cash flow and for Factoring companies Recruitment industry customers are very desirable. Therefore, if you operate in the following markets and you can imagine the benefits of no cash flow restrictions on the growth of your business, you may be a candidate for recruitment Factoring:
- Temporary Recruitment
- Temporary Manpower
- Permanent Recruitment
- Fixed Contact Placement’s
- Permanent Placement’s
- Recruitment Consultancies
- Staffing Agency
With Banks becoming increasingly inflexible Factoring for temporary & permanent labour companies is the sensible alternative to be considered.
How Does Recruitment Factoring Work? – For Many Recruitment Agencies, Cash Flow Can Become The Bottleneck For Growth
Instead of waiting for your customers to settle their invoices, you simply advise the Factoring company of your sales online. You can then draw up to 100% of the value, immediately. The balance, less fees is available once your customer pays. No more waiting 30, 60, or 90 days.
The Benefits Of Employment Agency Factoring – Recruitment industry is one of the most suited to invoice financing
It can be an overwhelming task for any recruitment company to pay numerous employees on time, while waiting for your invoices to be paid. This is where recruitment Factoring comes in.
- Up to 100% of the value of unpaid invoices released within 24 hours
- Working capital grows in line with sales
- Statements, reminders and notices sent to customers on your behalf
- Credit checks on new and existing customers are included for your peace-of-mind
- Offer customers better credit terms safe in the knowledge you have the funding readily available
- You stay in control of your customer relationship at all times
- No requirement to pledge personal assets as security
- Supports business expansion plans like new tender opportunities
Management is left to concentrate on core functions instead of chasing unpaid invoices and balancing cash flow.
Factoring Solutions are offered to the following type of concerns firms:
- Sole Proprietorships
- Limited Companies
- Sole Traders
Recruitment Factoring is suitable for recruitment companies of all sizes and for both temporary recruitment companies and permanent recruitment companies. It is particularly suited to new starts, growing businesses and those with insufficient security to attract more traditional lending.
If you can identify your business with any of the following frustrations your business could well be a candidate for recruitment Factoring:
- Are you are experiencing late payments from key customers
- Are you balancing payments to your temporary staff
- Are you wasting time chasing payments from customers
- Are you experiencing a negative impact on business cash-flow as a result of late payments
- Concerned about taking on new business and how it will be funded
- New start, looking for finance but unable to secure sufficient Bank facilities
Conclusion – Recruitment industry is one of the most suited to invoice financing
There are few industries more suited to Factoring than recruitment. If you are looking for a cost effective flexible way to raise money for your growing business Recruitment Factoring should be strongly considered.
So what are the benefits of Factoring? Businesses gain access to an on-going source of funds that is linked directly to sales and so a smooth predictable cash flow is assured.
The biggest qualification requirement is that you do business with reliable, credit worthy customers. Generally, the set up process takes about a week and after that you can get funding within a business day for your existing debtor book and same day when you submit fresh invoices.
When shopping around for Factoring make sure you do not make decisions purely on price. Although this is important you need to also make sure that the service you will receive will meet your business requirements.
We can help guide you through the whole process putting you into a fully informed position