Can invoice finance be used to fund weekly payroll for candidates?
Yes. We can provide up to 100% funding for your sales invoices to cover your weekly payroll. For many recruitment businesses this is the perfect solution to plugging the gap between when a worker needs to be paid and when a recruiter can expect payment from the client. Using invoice finance means funds are in place to ensure workers are paid on time every week regardless of late payments from clients.
Why is invoice finance important to recruitment companies?
Invoice finance is particularly important for recruitment companies because of the gap between workers needing to be paid and the agency actually receiving their payment from the client. The nature of offering recruitment services, particularly temporary recruitment, is that agencies need to have the cash in place in order to pay their workers well in advance of receiving payment from the client. Even for large established agencies this can pose problems, even a relatively cash rich recruitment business may experience cash flow problems during busy periods.
It also offers a valuable solution for recruiters to the time-consuming problem of chasing payments.
What if I only want to finance temporary placements?
That is absolutely fine. We work with recruitment businesses specialising in either permanent or temporary recruitment as well as those offering both. We can finance all your invoices or selected invoices depending on the requirements of your business. We aim to offer flexible solutions to meet the needs of a specific business at that point in time, as a business grows and evolves our services can change too.
What happens if a candidate leaves their role before their probation period ends?
This will depend on the terms and conditions you have in place with your client. Each situation is different but where a candidate leaves before completing their probation we will work with you to agree the best solution and an appropriate rebate where applicable.
How do I receive my weekly margin?
Clients using our agency or principal service will receive their margin weekly on a Thursday. Once we have processed timesheets, allocated any deductions and retained our fee then we compile a report detailing all workers paid, any deductions and our fee etc. This is sent out weekly every Thursday along with the payment of the accompanying margin.
Why do I need recruitment back office support?
Depending on what stage your business is at and your current staffing levels, back office support can make all the difference to enabling a business to progress and flourish. Back office support is often seen by new start-ups as a service they will need for the short term. In reality, many opt to continue to outsource some or all of their back office even once they are well established as it frees up time and can be an effective and efficient way to run a recruitment agency. We can also help agencies who find themselves needing back office support because they have grown and the volume of administrative work has increased.