Many Recruiters Still Overlook Receivables Finance

Receivables finance is used by far more companies within the recruitment sector (17%) than businesses within other sectors. However, recent research suggests that many recruitment agencies are still not considering this type of finance, which can be highly suited to their business type.

We found that 25% of recruiters, that were not using receivables finance, hadn't considered using it - and had opted instead for forms of finance such as overdraft and loan. In 80% of these cases this was because they expected the cost of RF to be too high, and one person mentioned not wanting to give a personal guarantee.

The key difference between RF and bank finance (overdrafts and loans) is that the RF will grow with your turnover, and in a fast growth sector - such as recruitment - this can be the kind of flexibility that businesses will come to need.

These reasons are also based, at least partly, on misperceptions about this kind of finance:


Far from being expensive, RF can be a cheap form of finance, particulary in highly suited sectors such as recruitment. You have the option to use it for all your invoicing, or you can dip in and out with selective finance. You can see some examples of prices.

Personal Guarantees

There are RF providers that do not require personal guarantees and many more that will limit the guarantee required to a fraction of the value of the finance taken.

Financial Help For Recruiters

We have an area on our site that gives more help to recruiters that are considering this type of funding.

Source: East Sussex & Kent Recruitment Finance Survey (100 Respondents) - June 2016

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