Keeping the New Recruits Lined Up!
We’re now well and truly into 2018 and there’s no time like the present to stop and think about some of the challenges facing your recruitment agency this year – and the solutions. From attracting the brightest talent to economic uncertainty, it can be a challenging time to run a recruitment agency, but there are tools out there to help you succeed. A back-office solution could be the answer if you’re struggling to manage your time and cashflow, and recruitment factoring is a great idea for agencies of all sizes.
You’ve Got The problems, Recruitment Factoring Has the Solution
As any recruiter knows, attracting the right talent is the key to success in the recruitment industry. Yet with Brexit looming on the horizon and economic uncertainty affecting even the industry’s major players, it can be difficult to know where to start. Recruiters want to be able to work flexibly and save themselves and their clients time and money whilst also attracting the best candidates. Stable cashflow is often an issue and it could be standing in the way of your agency’s goals for 2018.
How Can Recruitment Factoring Help Your Agency?
Don’t let cashflow become an issue. Waiting for late-paying clients to settle their invoices can hold you back in more ways than one. Are you unable to invest money in your marketing strategies or invest in new software, apps and packages? For recruitment especially, this can mean the difference between attracting top-tier candidates and working with the bottom of the pile.
Recruitment factoring helps bridge the gap between issuing your invoices and being paid. Instead of waiting the usual 30 days (or longer) to receive payment, your funder will pay you up to 90% of the value of the invoices within 24 hours. You can then choose whether you want to maintain client relationships yourself, chasing overdue payments the way you always do; or let the funder handle the back-office stuff. This effectively lets the factoring company take on the role of your accounts receivable department.
What if You Don’t Want Clients to Know You’re Using Invoice Factoring?
If you’d rather maintain your own client relationships then you can opt for invoice discounting instead of recruitment factoring. This means that you stay in charge of chasing clients for payment of invoices and your financial matters remain totally confidential. With this option, when a client pays, 90% of these funds go straight into a dedicated account. The factoring company then releases the remaining 10% (but not before deducting a small fee for their services). By staying in control of client relationships, you ensure that you’re always providing your clients with the best possible level of service.
What are the Benefits of Recruitment Factoring?
There are benefits for recruitment agencies of all sizes, whether you’re a start-up or an established company. Here are just a few of the benefits of recruitment factoring for your agency:
- Immediate payment of your invoices means there’s always cash in the bank to pay for new recruitment packages, apps and software to attract the best talent
- Stable cashflow makes it easier to meet financial commitments, such as paying your company tax or paying staff their salaries
- Choosing a factoring company with experience in recruitment factoring means you’ll benefit from expert advice
- No more waiting around for late paying clients, and no more need for an accounts receivable department or chasing late-payers
- You’ll save time and money
Make 2018 Your Year
Make this your year by finding out more about invoice factoring and discounting for your business. Here at Simply Factoring Brokers, you’ll find our expert advisers are helpful and approachable. We’re here to offer advice and answer any questions you have about recruitment factoring. Why not give us a call today on 0333 772 1558, or drop us a note at email@example.com?