Recruitment Invoice Finance

As a recruitment agency, you are likely to be paying for temporary workers and contractors while waiting for their invoices to be paid. Meanwhile, you will be focusing on the day to day tasks such as managing payroll, timesheets and raising and chasing invoices for your business.

Waiting for those invoices to be paid whilst needing to pay for your business’ bills can cause cashflow pressures however, this is where Recruitment Invoice Finance can step in.

Recruitment Invoice Finance is designed for recruitment agencies to support and invoice their cashflow and as the business, the finance facility can grow alongside it.

Recruitment invoice finance supports the growth of a business by releasing up to 90% of the value of the invoice, providing your business with funds within 24 hours once the application has been approved.

Invoice finance repayments work slightly differently from usual finance facilities as you don’t need to pay monthly repayments. Invoice finance works by the invoice finance lender will lend you a percentage of your invoice which means you will have working capital whilst you wait for your customer to pay for your invoice. Then when the customer pays their invoice, you will then pay the lender the amount advanced along with any interest and fees that you occurred.

Reduce the time waiting to be paid – To avoid waiting for your invoice to be paid, you can release the value of your invoices faster. Resulting in an improved cash flow.

Free Up Your Time – Some lenders on your behalf can rise invoices, manage payroll, timesheets and collect invoices.

Flexibility to manage your finances – Flexible contract and a fee based on your annual turnover, you can manage your finances without the worry of being tied into a long term contract

Manage Seasonal fluctuations – You may have a seasonal fluctuation of candidates (e.g Summer and Christmas), recruitment invoice finance can provide the funding so you can manage your cash flow throughout the year more effectively.

No extensive business credit search – A business credit search will be conducted however, an extensive in-depth search will be less likely. A lender’s interest will lie more with the businesses that have an outstanding invoice with your business as they will want to be confident that they will be able to pay their invoice.