- 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.
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