Finance is used extensively in the recruitment industry and in many cases it is the lifeblood of many companies. It assists with growth and allows the timely payment of overheads and most importantly, staff. Recruitment is by its nature a fast paced industry and quick payments are usually the engine for growth.
We have seen many recruitment companies in a number of different sectors and many speak about the same problem – which is delay on payment of invoices. Credit terms demanded by the larger companies will sometimes be penal on these fast growing players, as it will prevent new hires and much needed working capital.
What types of recruitment companies can we work with?
There is no set limit on the professions of the companies that we focus on. However, we see some industries more than others; a selection of which are outlined below:
- Short term contract/temp staff
How are funding limits decided?
We are frequently questioned about this and there is no set rule. Much of it comes down to the trade, customers and growth – along with the relationship with the lender. It is also helpful to grow with a lender and increase trust and a partnership in this way.
What is the maximum tenor of facilities?
Recruitment invoice finance facilities are typically around 60-90 days. This will really depend on the size of these invoices and who is the end payer; some large corporates may demand larger credit terms.
It is important to work with a partner who understands your business, the industry, clients and what you require.