- 09 Apr
Solving 5 Problems For Recruiters
This article sets out 5 common problems that we can solve for a recruitment company.
Needing More Time For Placing Candidates Or Temps
Most recruiters would like to have more time to work on placing candidates or temps. We can help solve this by outsourcing a number of your back office functions for you, freeing up time that you can spend recruiting candidates, or temporary staff, and placing them with customers. After all that is the core function of any recruitment business. If you need to recruit more customers, we are able to introduce you to a full service marketing agency that can come up with a marketing plan for your business, and implement that plan on your behalf. You stay in control of the activity but the work is undertaken by experts.
Managing the payroll of a recruitment company can be a pain. If you have a large number of staff on your books, keeping up with the paperwork required to pay wages can be difficult. It is possible to use a payroll management company who will take all of this work of your hands and produce all the required reports for you.
Getting paid by customers can sometimes require you to chase them up. This credit control function can again be provided by an external company so that you can focus on sales activity. Even if you are worried about customers being aware of the fact that you are using such service, you can outsource this on an “confidential basis“ such that all contact is made in the name and branding of your company. This may also give customers the impression that your business is a larger organisation than it is.
Keeping the cash flowing through a business is paramount in any industry sector. However, it can be particularly difficult for recruitment businesses when I have large numbers of staff to pay on a regular basis. Receivables financing unlocks the cash that can be tied up in unpaid cells in voices, for you to use within the cash flow of your business. This increases your working capital availability allowing you to pay wages, suppliers and other running costs promptly.
Bad Debt Risk
A big risk for any business is that a customer fails to pay them, perhaps becoming insolvent. Bad debt protection is available to mitigate this risk. Recently we have seen examples of many large, well-known businesses going into administration or liquidation. This can present a significant risk for a small business providing staff.
- 21 Oct
An RPO Debtor Has Rejected An Assignment Letter Clause
A recruitment sector RPO debtor has apparently rejected part of a GNA or General Notice Of Assignment letter. This is a worrying development for recruitment sector financing.A "GNA" is a letter from an invoice finance user, to their customers, informing them of the invoice finance arrangement, specifically the "assignment of the book debts".Assignment is the process underpinning factoring and...
- 05 Jul
Removing GRI Invoice Funding Restrictions.
Recruitment companies that are supplying GRI, do not need to experience credit limit restrictions, or prime debtor restrictions, if they are using invoice financing. We can introduce funders that can help by removing those limitations.GRI UK (formerly called De Poel) is one of several RPOs (which are umbrella purchasing organisations) that deal with the temporary staff supply to major...
- 19 Feb
Alternatives To Pay And Bill Invoice Finance Companies For Temporary Recruitment
Temporary recruitment is an sector where invoice finance is broadly used, even new startup companies can get access to this kind of funding, which can enable recruiters to get their own company off the ground without the need for investment or investors.There are a wide variety of invoice finance companies that help recruitment companies, offering differing degrees of support (payroll and...
- 01 Nov
Invoice Factoring For Recruitment Startups
No sooner had I finished publishing our free business startup guide and we received an email from someone that is looking to launch a new startup recruitment company next year. The question asked was as follows:“. . . would like to query whether we would be eligible for invoice factoring. I acknowledge that with a lack of a trading history this may not be straightforward,”.The alternative...
- 19 Sep
Invoice Finance For Sales To GRI UK - Geometric Results International formerly De Poel
We have just had another example where we have been able to find a higher invoice finance credit limit, for sales to GRI UK (formerly called de Poel), than our client was able to find on their own.GET RECRUITMENT INVOICE FINANCEThe credit limit that we found them, with a reputable invoice finance company, was in fact 250% of the value of the limit that they had been able to find themselves by...
- 13 Sep
Horror Stories About Recruitment Outsourcing
We had an meeting with one of our funding partners that specialises in helping finance recruitment agencies, and the conversation turned to the variety of full service recruitment outsourcing companies that are in the marketplace. These companies effectively take care of just about everything for a new recruitment agency.Full service outsourcing (sometimes called “white label” or “white...
- 10 Aug
Care Staff Recruitment Invoice Finance
We have been successful in finding invoice finance for a number of companies operating within the UK care sector.REQUEST A FREE QUOTEOften the provision of care workers is funded by local authorities, but there can be delays in receiving payments for services already rendered. See our free credit control guide for tips about chasing local authority debts.We have introduced many care staff...
- 25 Jul
Startup Invoice Finance For A Driver Hire Recruitment Agency
It is not always easy for a new start recruitment agency to find an invoice finance company that is prepared to deal with new start-up businesses. The risk involved with the potential failure of new ventures means that some funders choose not to deal with newly formed companies. Once established however, just about every funder will be happy to assist, but in the initial stages the choice is...
- 21 Jun
De Poel Rebrands As GRI Following Acquisition
According to Global Banking & Finance, de Poel - the neutral - vendor managed service provider (MSP) for non-permanent hires and contingent workforces has rebranded as GRI. This follows de Poels acquisition in January 2018 by GRI, a US based independent extended workforce solutions provider.We have had a number of successes in helping clients find funding against invoices to GRI (formerly de...
- 15 May
Have De Poel Stopped Offering Early Settlement Discounts?
We had an enquiry recently from a prospect that suggested that de Poel may have stopped offering their early settlement discounts to suppliers. Does anyone know if this is true?It may be that it was specific to this prospect, or a change for future customers but we would be interested to know if it has affected any other recruitment suppliers.Contact us about De Poel early settlement...
- 31 Mar
Recruitment Startups Building Up Enough Trade For Receivables Financing
We have recently spoken to a few new start recruitment companies recently that have taken the approach of waiting to set up their receivables financing arrangements, until they have what they consider to be a sufficient amount of work in the pipeline.This may sound logical, but there are several reasons why it may not serve your best interests as a recruiter.There are a couple of things to...
- 16 Mar
Invoice Finance For 100 Percent Permanent Placements
An interesting recent case where one of the invoice finance companies passed a client to us, that they were unable to assist.This particular case was a specialist recruitment company, dealing with the education sector - staff such as nursery teachers. The agency dealt with 100% permanent placements, that is recruiting for permanent roles, rather than temporary staff.Temporary staff recruitment is...
- 14 Nov
Facts About Invoice Finance For Recruitment
I think we should be talking up invoice finance, not running it down. 98% of existing users told our independent poll that they would recommend the service to other businesses, and the volume of complaints to the ABFA (now part of UK Finance) has been tiny, 0.15% of clients each year, as a proportion to the number of businesses using this type of finance.I saw a post by one of the specialists...
- 27 Oct
Payroll Services For Recruitment
Running your own payroll can be time-consuming so many businesses prefer to use a payroll services company in order to undertake all aspects of the function on their behalf, and so use a payroll services company.Many of the invoice finance and factoring companies provide payroll services in addition to their financing services. Even if you don’t want to have the benefit of any finance, you can...
- 01 Sep
Solving A Pay When Paid Concentration Limit Problem On Hays Recruitment
Another success story regarding a client that we were able to help overcome an invoice finance funding restriction.We have seen many issues with debtor concentrations, within the recruitment sector, that can be relaxed by comparing the funding levels between different providers. We had a case where a client needed help with the concentration limit on Hays Recruitment, with whom they wanted to...
- 21 Aug
Is It A Good Time To Enter The Recruitment Business?
Is it a good time to enter the recruitment business? We can't make the decision for you but here are a few facts and figures that might help you in making your decision about starting a temporary staff agency.OK, so the level of economic growth predicted for the UK has just been slightly adjusted down, however the economy is still predicted to grow - which means more production, hence more...
- 29 Jul
Recruitment RPO Narrow Profit Margins
We help find recruitment invoice finance for a lot of UK companies within the recruitment sector, so we are very familiar with the issues that they can face when dealing with RPOs, not least of which is how to source services such as finance when they have very narrow profit margins, that are being continually squeezed.When I worked at Barclays, in their factoring division, we never came across...
- 07 Jun
Recruiters Using Invoice Finance Have Less Late Payment Concerns
Recruiters that use invoice finance have fewer issues with customers paying late.In our study of the attitudes of East Sussex & Kent based recruiters to late payments problems and the use of various finance options, we previously reported that 52% of the recruitment companies that we surveyed told us that they wanted to see late payments by customers improve.Further analysis of the results of our...