Two of the biggest challenges faced by any business at any stage are cash flow and relationship management. For recruitment companies access to finance is often harder because of their structure and the basic nature of their business. <\/p>\n\n\n\n
As a recruitment company you will tend to be people rich and asset poor, meaning that there isn\u2019t the tangible security of plants or machinery to offer up as security. If you\u2019re not cash rich then many finance providers will treat the loan as a pseudo-consumer and may ask for stringent personal guarantees or \u201call asset\u201d debentures which lock you in for lengthy contracts you don\u2019t necessarily need. <\/p>\n\n\n\n
You will have worked tirelessly to bring on new business to place regular staff and to keep contractors on your book to fulfil these places. Yet, more often than not your customers will demand credit terms and your contractors usually expect to be paid within 7 days of completing their work. The last thing you want to be doing is chasing for payment or being accused of non- or late-payment. <\/p>\n\n\n\n
So you\u2019re left with a cash flow gap which means that without access to outside investment or readily available funding your business will not be able to invest or realise growth plans. <\/p>\n\n\n\n
Fortunately, there is an option for you, and the remainder of this article explains how you could use receivables finance<\/a> to bridge that cash flow gap and keep your reputation and relationships intact. <\/p>\n\n\n\n Most temp recruitment businesses will use a form of invoice finance to ensure that cash flow can meet the weekly demand of contractors\u2019 wages. Also known as Invoice Discounting or Factoring, this type of finance is different to a business loan or other forms of finance. <\/p>\n\n\n\n Here at Accelerated Payments, we\u2019re slightly different we do all the above, plus a little more<\/a>. <\/p>\n\n\n\n And you don\u2019t have to take our word from it \u2013 here\u2019s what our client First 4 Recruitment have said. <\/p>\n\n\n\n \u201cWe realised, after trying to cover that gap ourselves, that it was actually holding us back from saying yes to client requests: we needed a financing solution that would let us meet high-volume contracts, confident that cashflow wouldn\u2019t be an issue<\/strong>,\u201d said company Director, Samba Hall. <\/p>\n\n\n\n First 4 Recruitment fills an important niche in the recruitment industry, supplying staff to the industrial, logistics, construction, & commercial sectors. This often involves high-volume recruitment requests from clients in particular to large warehouses who need to book dozens or even hundreds of temporary staff at any one time, however the agency needs to pay its people weekly and sometimes clients may take up to 60 days to settle invoices. <\/p>\n\n\n\nReceivables Finance <\/h2>\n\n\n\n
Individual Invoice Finance from Accelerated Payments <\/h2>\n\n\n\n