- 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 narrower.
Below I explain how we found funding for a new start recruitment agency.
Invoice Finance For A Startup Recruitment Agency
We were recently able to assist a new start recruitment agency, who are specialising in the driver hire sector, to find invoice finance companies that will deal with new start-ups.
Funding RPO Debtors
The situation was further complicated by the fact that our customer was dealing with a prime debtor, one of the RPOs, which can present funding problems that we have previously reported on. In view of this, the client had spoken to a few invoice finance companies, including a bank that option, but they were taking a conservative approach in terms of the flexibility of funding they would allow against this large RPO debtor. This would not have released the cash flow boost that they company needed.
Independent Vs Bank Options
In the end, we were able to present them with two options, one an independent company, and the other a bank backed concern. The customer chose the independent company, specifically because they were not part of a bank, and they appreciated the flexible stance that an independent invoice finance come had taken to funding their sales ledger.
It is always sensible to think that if a company is reluctant to fund particular debtors at the outset, in order to win your business - it does not bode well for the approach that they are likely to take once they have you on board. Clients often don't consider this future issue until it presents itself.
With the required finance in place, this new staff recruitment agency are well placed to achieve their substantial growth projections.
If you would like more information these are a selection of related resources:
- 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...
- 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...
- 09 Apr
Solving 5 Problems For Recruiters
This article sets out 5 common problems that we can solve for a recruitment company.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...
- 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...