There’s something so refreshing about the start of the new year, thoughts of a new start and what may be.
If you are considering branching out on your own in the recruitment world or looking to grow your existing temp agency, a focus on cash flow is essential to ensure the new year plans don’t fall flat!
Cash flow is essential to all businesses and their success, but by the nature of the industry and its structure, temporary recruitment agencies can be negatively impacted by long payment cycles. This coupled with candidates requiring often weekly payment, a steady stream of income can be hard to maintain.
Agencies are heavily reliant on clients paying on time and in full, but even with this client compliance, agency growth can be hampered and profitable businesses significantly effected.
Various options are out there for temp recruiters, it is just a matter of researching and securing the best and most suitable solution to secure better cash flow. Short-term business loans, credit cards or overdrafts are all options but these can carry more risks and substantial additional charges.
Invoice financing companies can advance funds quickly and more cost effectively, raising finance against outstanding client invoices. Money can be received then well before a client actually settles their invoices, often as swiftly as 24 hours.
Take on new business
Invoice funding can allow agencies to grow and take on new business with the confidence they can comfortably and without the burden of extra debt. Having the ability to quickly adapt to upcoming opportunities heavily relies on ready accessible capital.
Appeal to bigger clients
To enable you to go after the larger and more profitable contracts, you may well need additional staff to make it possible. Invoice finance can open-up access to funds you wouldn’t usually have and often offer more favourable terms.
As your client portfolio and staff numbers increase, so does the ability to access additional funds, allowing you to expand.
Relieve your admin stress
The work involved for smaller companies to chase payments, which can be a large drain on resources. An invoice funding company can take over this area for you, taking on many of your administrative duties, freeing up your time to concentrate on your growth plans. Teams can support you collecting monies due and allocating remittances and payment to your sales ledger. In addition, management information can be provided, so you are always fully in the picture.
If you would like to learn more about how Flo can help you grow your temporary recruitment business, you can contact us on 01827 438065 or firstname.lastname@example.org
Photo by Ravi Roshan on Unsplash