Blog / Starting Up /

Finance options for a new recruitment agency

Published on 19th June, 2022

Many start-up recruitment agencies seek funding early on. Even when self funding is an option, it is generally not maintainable, especially in the temporary recruitment sector where businesses are required to invoice and make payroll on a weekly basis. Temp recruitment agencies especially can suffer a short-fall when payroll commitments dictate they pay staff before clients have settled their invoices. 

What Are Your Financing Options?

Government funded schemes and traditional bank loans do offer potential funding options for start-up recruitment agencies. However, these more traditional sources of financial support are highly competitive and often involve extensive application processes. Traditional lenders and lending schemes can also impose strict funding and credit limits.

Due to these restrictions, in recent years the number of recruitment start-ups seeking assistance from specialist recruitment finance providers has risen sharply. What can recruitment finance offer?

Advantages of Using a Specialist Finance Provider

• Process your payroll, pay your candidates, raise your invoices, collect payments from your clients and pay you your profits
• Specialist finance providers have an extensive knowledge of the recruitment industry and its needs, as well as offering your agency favourable credit and funding limits
• A provider offering flexible funding for your weekly candidate payroll will give you greater freedom to develop your new agency and a greater chance of success
• 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 winning new business and building positive working relationships with your clients 
• 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

Choosing The Right 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 process.

The best specialist providers offer:

• Support and guidance from experts that know the industry and its unique challenges
• Back Office software designed specifically for the temporary recruitment industry
• Back Office software that manages your administration tasks while keeping you compliant, thereby helping you avoid costly fines and potential damage to your reputation
• Security management for recruitment agencies. A provider using a secure cloud-based system will make regular updates and software patches as well as offering valuable advice and support

The best specialist partners provide Back Office services with software that includes:

• Candidate Bookings
• Customisable Electronic Timesheets
• Invoice Production and Despatch
• Contract Management in line with Current Legislation
• Payroll Processing and Export
• Management Reporting
• AWR Tracking and Reporting to manage compliance
• Eligibility Checks • Credit Control

By using a back office service provider and recruitment finance solution you can be assured that your administrative processes are well managed and your payroll fulfilled on time while giving you the financial freedom to grow your recruitment business.

We can help with your recruitment finance questions, contact us on 01827 438065 or send us a message.