Finance is an essential part of every successful business. Whether just starting out, established or looking to grow, having the right financial solution in place can take a business to a whole new level.
For recruiters, the right finance is crucial to ensure cash flow is maintained throughout the month, particularly for those that deal with temporary placements, this is due to the fact that candidates will often be paid on a weekly basis but invoices will need to be raised monthly.
The vast choice of finance deals and providers that are currently on the market can be overwhelming, but there are some fantastic choices that are specifically geared towards the recruitment industry and answering cash flow requirements.
Choosing a finance provider
Considering your options
Many think that bank loans and overdrafts are the only viable way to gain finance, but this is not the case. There are two types of finance that are widely used within the recruitment industry; invoice financing and invoice discounting.
Both types of finance allow a recruiter to release a percentage of funds from an invoice, as soon as it has been raised and sent to a client. This means that you no longer have to wait the typical 30 plus days for the invoice to be paid.
There are two distinct differences between invoice finance and invoice discounting. With invoice finance, your finance provider will chase for payment of said invoice once it has been raised, this means that your clients will know that you use this facility. In contrast, invoice discounting keeps the responsibility for credit control within your business, effectively keeping the fact that you receive this type of finance confidential.
Choosing a provider
With so many finance providers out there, it can be tricky to pinpoint the one that will provide the most effective package. You should be on the lookout for one that not only provides both invoice finance and discounting, but also one that has significant experience in the recruitment industry.
Here at Zodeq, the majority of our team have worked alongside or within the recruitment industry for the majority of their career. We understand how the recruitment industry operates, the requirements that your business will have and what finance will work best for your needs.
If you are looking for the right finance for your recruitment company, speak to our team today.