How is Invoice Discounting Impacting on the Recruitment Industry?
The recruitment industry in the UK seems to be growing at a fast rate, with more and more businesses reporting success everyday but what is helping this growth? Well, many recruitment company owners are turning to invoice discounting as a way to free up some cash to make strategic growth plans which means they are beginning to thrive. Using invoice discounting as a means to bring some cash into their business bank account as soon as an invoice is raised, means recruitment business owners can immediately start to expand their teams and work on smashing sales targets rather than sitting and worrying about cash flow.
How can invoice discounting help?
One of the toughest parts of a recruiter’s job is finding the right caliber of candidates and making sure the marketing budget stretches far enough to ensure they can advertise in the right places to attract these candidates. If cashflow is unreliable or falls short of what they need then the entire recruitment process can fall down, which will have a further impact on cashflow. So how can invoice discounting businesses like Finance4Recruitment help? Well, the use of invoices for funding is perfect to finance recruitment agencies as there can often be a long delay in having to pay bills or candidates, and actually receiving payment from clients.
What is invoice discounting?
The fact that many recruitment agencies have large amounts of money tied up in unpaid invoices, means that using a finance solution company like us will help you to access cash in order to fulfill all of you advertising and marketing needs. If you have temps that are waiting to be paid, or important subscriptions that you need to review then invoice factoring could provide the solution you need. It is a low risk way of borrowing money that you need right now, without tying yourself into borrowing more money that you can afford.
With invoice discounting, you can get access to up to 90% of the value of your invoice usually within 24 hours, which means waiting around for clients to pay and becoming increasingly frustrated when they don’t will soon become a thing of the past. If you choose the right finance solutions provider as well, they may even be able to help you with you accounts receivable, meaning that you don’t have to worry about chasing clients for payment anymore either.
Can it help with temp recruitment?
The Christmas party season is approaching, which means that temp season is nearly on us again and so recruitment agencies across the country are gearing up to deal with an influx of seasonal vacancies and temp candidates. Advertising for the right quality of temp in the numbers that are needed can leave a serious hole in your marketing budget, and finding the clients who are looking for temporary workers to match these up to can really stretch your budget to the limit.
When you use invoice discounting you can make sure you have the cash you need for advertising and marketing for both clients and candidates, and also to pay them at the end of each working week. If you are a fairly new recruitment agency who is competing for the temp market in a fairly large city, then invoice finance could give you the advantage you need to stay one step ahead of your competition.
Solution providers can offer expert advice
As well as offering the obvious financial support, invoice finance solution providers can also offer you expert advice when you need it most. So, you will always feel sure about what you are doing when it comes to retainer work or leveraging funds outside of the debtor book. The financial solutions we can offer you also means that instead of having money tied up in unpaid invoices, you have access to cash to scale your business and carry on attracting new clients. You no longer have to sit about and wait for money to come in, and deal with late-paying clients yourself (unless you want to). We offer a customer handles own collection service (CHOCS) meaning that you are still in charge of credit control and you handle all aspects of the customer relationship, while still being able to access up to 95% of the value of the unpaid invoice.
Top tips for using invoice discounting
Using invoice finance means you get a more reliable cash flow injection which is much less risky than more traditional methods of funding, as the only money borrowed is money that is already owed to the business. This steady stream of cash helps to maintain a healthy bank balance for the recruitment company.
Before you sign up for invoice finance, check out our top tips:
- Map out a realistic forecast for the forthcoming year, paying close attention to important dates such as bill payments or salary runs which clash with dates when you are due to receive payments
- Take a look at your existing unpaid invoices and work out how much you could potentially release from them
- Take a look at the range of services we offer to decide which may be the best for you – whether you want to take advantage of our factoring with back office service or our customer handles own collection service.
To find out more about the financial recruitment services we offer, and how we can help your business to grow, please get in touch with our friendly and experienced team today. You can call us on 0161 408 5303 or send an email to firstname.lastname@example.org