Funding and finance as a new recruitment agency - what are your options?

Most start-ups seek funding early on. Even when self funding is available, it is generally not sustainable, especially in the temporary recruitment sector where businesses are required to invoice and make payroll on a weekly basis. Temporary recruitment agencies in particular can suffer a short fall when payroll commitments dictate they pay recruitment staff before clients have paid their invoices. 

What are your Options?

Government funded schemes and traditional bank loans offer potential funding options for start- ups. However, these more traditional sources of financial support are highly competitive and often involve extensive application processes. Traditional lenders and lending schemes can also impose strict funding and credit limits.

Due to these restrictions, in recent years the number of recruitment start-ups seeking assistance from specialist finance providers has risen sharply. 

The Benefits Of Using A Specialist Finance Provider

  • Process your payroll, pay your candidates, raise your invoices, collect payments from your clients and pay you your profits.

  • As well as offering your business favourable credit and funding limits, specialist finance providers have an extensive knowledge of the recruitment industry and its needs.

  • A provider offering flexible funding for your weekly candidate payroll will give you greater freedom to develop your new agency and a greater chance of success.

  • The world of recruitment is competitive, and flexible funding from a specialist provider will enable you to take opportunities as they arise without worrying about restricted credit limits or funding caps.

  • Having experts on hand to help collect payments from your clients reduces the stress of chasing invoices. It also enables you to focus on building positive working relationships with your clients and winning new business.

  • A specialist finance provider can help you reinvest in your business. Fully-insured funding solutions can provide your new business with 100% of your gross profit each week, giving you the confidence to invest in your business. 

Choosing The Right Partner

Finding the right Recruitment Finance solution for you is essential. You may want to consider a provider offering a full back office and funding solution.

A complete package designed to fulfil your back office and funding needs streamlines your entire administrative workflow.

The best specialist providers offer:

  • Support and guidance from experts that know the industry and its unique challenges.

  • Back Office software designed specifically for the recruitment industry.

  • Back Office software that manages your administration tasks while keeping you compliant, thereby helping you avoid costly fines and damage to your reputation.

  • Security Management. A provider using a secure cloud-based system will make regular updates and software patches as well as offering valuable advice and support.

The best specialist partners provide Back Office services with software that offers:

Candidate Bookings

Customisable Electronic Timesheets

Invoice Production and Despatch

Contract Management in line with Current Legislation

Payroll Processing and Export

Management Reporting

AWR Tracking and Reporting to manage Compliance

Eligibility Checks • Credit Control

By using a back office service provider and recruitment finance solution you can be assured that your administrative processes are well managed and your payroll fulfilled on time while giving you the financial freedom to grow your business.

 

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