- 17 Feb
Success Story - Funding Invoices To GRI At 90 Percent
Another success story where we have been able to find one of our recruitment customers a recruitment invoice finance company that could fund their invoices to GRI at a 90% prepayment percentage.
Funding GRI Invoices At 90% Prepayments
In this case, our client is a new start care staff agency that have been successful enough to win contracts to supply staff to a number of end customers.
The temporary staff of these end customers all go through GRI (Geometric Results International - formerly known as De Poel) who are one of several RPO umbrella purchasing organisation. This means that large end customers will use them to source all of their temporary staff, rather than having to deal with a large number of small recruitment agencies.
This use of an RPO streamlines the supply chain from the end customer's perspective, however it can mean that staff agencies end up with sales concentrated into these RPO debtors.
Invoice Finance Funding
Many staff agencies like to use invoice funding in order to release the cash from their invoices immediately. This means that they don't have to wait to get paid by their debtors, and they can use this cash (called prepayments) to meet their payroll obligations. A large number of recruiters use this type of receivables finance to smooth out their cash flow.
In this particular case, the nature of the supply chain meant that our customer needed funding against their invoices that will be made out to GRI.
We introduced them to an invoice finance company that were able to fund their invoices to GRI at a 90% prepayment (the balance less the fee is passed to our client when the customer pays). This will release cash immediately that they raise their invoices.
Payroll Management To Save Hassle And Time
In addition, our client did not want the burden of operating their payroll themselves or undertaking the credit control. The receivables financing company are taking over the credit control activity and the management of our client's payroll so that they don't have the hassle, and can spend their time making new sales instead of undertaking the administration tasks associated with a staff payroll and chasing invoices.
Note: we cannot guarantee this funding rate for all companies but we are happy to search the market for offers that will apply to your staff agency.