Case Study - Recourse Factoring For A New Start Recruitment Business
This case study concerns a new start recruitment company that were projecting to achieve turnover of 500K in their first year of trading.
FundInvoice were able to find the recruitment business a recourse factoring facility with a bank owned factoring company that will ensure that the business gets the working capital that it will need. Often finance is hard for new start businesses to secure by factoring has an advantage as the level of finance is based on the value of invoices that the business raises rather than the assets or net worth that it has.
The recruitment sector is also perfect for forms of invoice finance such as factoring as the invoices are clearly supported by signed work sheets once the temporary staff have completed their duties. This makes the recruitment sector highly attractive to invoice finance funders who will often offer higher funding levels to this sector.
Recourse factoring provides both funding against unpaid sales invoices and credit control support with the collection of the outstanding sales ledger. It can therefore be a perfect solution to new start businesses, removing the need for them to take on costly credit control staff or waste the time of the business owner undertaking that credit control function.