Why are Recruitment Companies using Invoice Finance?
Recruitment invoice finance is a finance facility which tends to meet the needs of a recruitment company. As a facility that grows with the business and no monthly repayments, it’s becoming a popular choice amongst the recruitment sector for when an injection of working capital is required or to help ease cashflow pressures.
How does Recruitment Invoice Finance?
The purpose of Recruitment Invoice Finance is to help recruitment agencies invoice and support their cash flow. The finance facility can expand with the business
When an application is accepted, recruitment invoice finance releases up to 90% of the invoice’s value, enabling your company to receive funds in as little as 24 hours.
The purpose of Recruitment Invoice Finance is to help recruitment agencies invoice and support their cash flow. The finance facility can expand with the business
When an application is accepted, recruitment invoice finance releases up to 90% of the invoice’s value, enabling your company to receive funds in as little as 24 hours.
How much are the monthly repayments with Invoice Finance?
Invoice Finance works slightly differently from other finance facilities like a business loan or asset finance.
There are no monthly repayment requirements. To provide you with working capital while you wait for your customer to pay for your invoice, invoice finance lenders will lend you a portion of the outstanding invoice.
You will then pay the lender the advanced amount plus any associated interest and fees when the customer pays their invoice.
What are the Benefits of Recruitment Finance?
Improved cash flow
One of the key benefits of Recruitment Invoice Finance is that it allows businesses to convert their unpaid invoices into working capital; easing cashflow pressures. As a result, the business will have a consistent and reliable source of working capital whilst they wait for invoices to be paid.
The boost of working capital will allow daily operations to continue without disruptions and avoid missed payments on bills and payroll.
Flexibility and Scaling up
An invoice finance facility can grow alongside your business. As your business starts to increase the number of invoices they issue, the funding line can increase to accommodate the growth.
Mitigating payments delays
Late payments for any businesses can have serious effects: late payment charges, potentially affecting your credit score and causing conflict with suppliers. However, if you’re waiting on invoices to be paid then how are you also expected to pay invoices?
This is where Invoice Finance can step in, escaping late fees, uncertain periods and maintaining a healthy cashflow.
Reduced administrative delays
Depending on the Invoice Finance option you go for, a recruitment finance lender can provide support – credit control and invoice management services. This assistance will allow you to concentrate on other areas of the business, increasing efficiency and driving growth within the business.
Is Recruitment Invoice Finance right for my business?
Recruitment finance can benefit many businesses that operate within the recruitment sector and could benefit those who are:
- A start-up hiring company trying to build a solid foundation and efficiently handle cash flow.
- Growing companies that are expanding quickly who need more working capital.
- Businesses battling bad debt or late payments and are looking for stability and security in their finances.
- Companies that want to concentrate on their core skills and simplify their operations.
However Invoice finance isn’t limited to only businesses that operate in the recruitment sector, it has benefitted businesses across many sectors such as Export, Construction, Wholesale and Logistics for example.
How can we help you with your Recruitment Funding Requirements?
As a broker, we can arrange a full suite of finance solutions depending on your requirements. Get in touch with our team today on 01270 443510 or complete our enquiry form.