Case Study - Factoring For Care Home Staff Recruitment Agency
We were approached by a new start care home staff recruitment agency that were looking for some additional working capital. Despite being a new start the recruitment agents were projecting turnover of £500,000 in the first year and they were looking for finance to help them pay their staff whilst they waited for their sales invoices to be paid by their customers who were care homes.
Recuitment sector businesses are ideal for factoring so we were able to find them a recourse factoring facility with a bank owned factoring company that were happy to help a new start business. The factoring company will provide them with prepayments against their sales invoices as soon as they raise them and they will also assist the client with the collection of any outstanding sales invoices.
Nursing homes and residential homes for the elderly often need the flexibility of being able to access additionals temporary staff at short notice so staff agencies service a vital purpose in providing staff such as:
- Care assistants
- Catering staff
- Maintenance and gardening staff
- Administration staff
Provision of such staff is highly suited to factoring which can be an ideal way of funding a staff recruitment agency.