Recruitment Factoring – the Answer to your Payroll and Funding Needs
The cash flow demands on recruitment business are intense. A large proportion of operating costs goes to meet payroll. The success of your business will be heavily dependent upon your clients paying bills, so that you can in turn, pay your staff wages. Any slight blip or delay in this process leaves you having to fund the shortfall.
Your recruitment company can use any of two forms of finance:
- Funding without back office support
- Up to 90% of invoice amount funded
- Available for temps and permanent placements
Recruitment / Payroll Finance / Back Office Factoring
- 100% of invoice value funded (net of VAT)
- Wages paid directly to temps and payslips issued
- You receive your margin
- Automatic HMRC payments including VAT & NI (subject to funder)
- Low all-in-one fee for simple pricing
- Full Back Office Factoring system to manage payroll and invoice finance advances
Recruitment Factoring is ideal for those businesses looking to expand and grow their business but who may not have the large cash reserves needed to fund it themselves.
It can also prove an ideal solution for new recruitment specialists who require the increased flow of capital through their business during the start-up phase. It will benefit from the additional back support services that this type of funding can provide.
What are the Benefits of Recruitment Factoring for Your Business?
- It is a quick and effective method of releasing equity tied up in your invoices
- It increases your cash flow and allows you to keep up with wage payment
- It allows you to outsource your back office support such as credit control and ledger management
- You can include optional bolt-on services such as matching timesheets to invoices, processing payroll and producing payroll slip
- It can reduce the administrative burden on you and your company, allowing you to focus resources where they are needed most
- The funding available to you will grow as your business grows
- You can add bad debtor protection to your funding facility, providing peace of mind and stability
How can Simply Factoring Brokers help?
We work with a range of specialist funders who are experienced within the recruitment industry. They understand the complexities of your business and will support you with cashflow, allowing you to grow your business.
We will find you a funding solution that ensures you have the freedom and flexibility that you need to allocate vital resources where they are needed most.
For more information on recruitment factoring and how it can help your business, speak to our team of specialist brokers by giving us a call.
We make your business our business.