Starting a business is a huge milestone, it’s exciting and exhilarating but it can also be overwhelming and challenging. There is so much to think about, from choosing a business name to branding, designing a website, implementing systems and processes, the list goes on!
For many recruitment founders and entrepreneurs however, one of the steepest learning curves for starting a new business is financing. There are numerous routes to consider, from start-up loans to grants to seeking investment, so where do you start?
We’ll let you in on a secret. Aside from traditional bank loans, which you need to apply for and will affect your credit history, many recruiters looking start a business are now turning to invoice finance – a practical approach which offers many benefits over other forms of funding.
What is invoice finance?
Working capital and cash flow are crucial in any business but in recruitment, they are the foundations for building a busy, successful agency with growth potential.
Ensuring temp workers and contractors are paid efficiently and on time is key to building and maintaining a good reputation in the industry. There are different approaches to managing cash flow, but for the majority of start-up recruitment businesses, invoice financing is the perfect solution.
It’s also worth noting that invoice finance is not a loan scheme so using this approach to funding won’t impact on your credit score.
Invoice financing works by releasing a portion of cash tied up in an invoice as soon as it is raised. Paying temp and contract workers weekly while waiting for invoices to be paid can be problematic, especially when many businesses work on 30, 60, or even 90-day payment terms. Invoice financing solves this problem, releasing cash to enable workers to be paid and ensuring consistent cash flow in the business.
How can Zodeq help?
At Zodeq we don’t just offer invoice financing to start-up businesses, we are recruitment specialists and can offer a range of back office support services too, ultimately saving time and freeing you up to focus on what’s important.
We’ve helped countless recruitment businesses grow and flourish, but don’t just take our word for it! Just take a look at some of our case studies. Choosing a business finance partner with industry expertise can make all the difference. We are here to support your business with a proven solution that will grow with you, with bad debt protection included as standard and a simple fee structure with no hidden charges.
If you’re running a recruitment start-up, or planning to, then you can find out more about the benefits of our invoice finance & back office services for start-ups here. Or get in touch to discuss how we can help you get started and grow your recruitment business through our invoice finance services.
