Article published on: 24/04/22
The challenge for every temporary recruitment business is to guarantee your net cash flow is managed thoroughly to prevent running out of money. Many recruitment businesses don't succeed not because consultants are underachieving or a less than thorough business plan, but because of a failure to control cash flow.
Managing your cash funds and ensuring you have sufficient to meet any outgoings is vital. Rent, wages and monthly bills will formulate the majority of expenses and need to be monitored closely.
For temporary agencies the need to pay agency staff on a weekly basis can be the biggest expenditure and the main challenge.
A considerable shortfall can be experienced as weekly payroll commitments dictate candidate payment is often 6-7 weeks before a client invoice is settled. The impact on cashflow of this cash gap can be detrimental. Unless an agency has access to outside investment or funding, often their business fails to prosper as growth cannot be achieved or maintained.
A specialist recruitment industry funder establishes a more healthy and flexible cash flow, ensuring payroll obligations can be met without excessive stress on the business.
Choosing The Right Recruitment Funding Partner
Finding the right recruitment finance solution for you is essential. You may want to consider a provider offering a full back office and funding solution.
A complete package designed to fulfil your back office and funding needs streamlines your entire administrative workflow.
The best specialist providers offer:
Support and guidance from experts that know the industry and its unique concerns
Back Office software designed specifically for the recruitment industry
Back Office software that manages your administration tasks while keeping your recruitment agency compliant
The benefits of using a specialist finance provider
They will process your payroll, pay your candidates, raise your invoices, collect payments from your clients and pay you your profits
As well as offering your business favourable credit and funding limits, specialist finance providers have an extensive knowledge of the recruitment industry and its needs
A provider offering flexible funding for your weekly candidate payroll will give you greater freedom to develop your new agency
The world of recruitment is competitive, and flexible funding from a specialist provider will enable you to take opportunities as they arise without worrying about restricted credit limits or funding caps
Having experts on hand to help collect payments from your clients reduces the stress of chasing invoices. It also enables you to focus on building positive working relationships with your clients and winning new business
A specialist recruitment finance provider can help you reinvest in your business. Fully-insured funding solutions can provide your new business with 100% of your gross profit each week, giving you the confidence to invest in your business
At Flo we offer a transparent and straightforward invoice funding solution for temporary recruitment agencies, making our client lives easier. We have no hidden fees or add-ons for you to consider, simply a small percentage to pay on invoices and up to 100% of the invoice paid to you quickly. 01827 438065 or firstname.lastname@example.org for more information.
Photo by Alice Pasqual on Unsplash