Blogs
“I HAVE A POOR CREDIT RATING, WHAT CHALLENGES WILL I FACE IF I START MY OWN AGENCY?”
This is a question MAYACHI has heard many times over the years. It’s not uncommon for recruitment consultants to face financial issues, such as unpaid creditors or loan defaults, that lead to County Court Judgments (CCJs) and poor credit ratings. While having a bad credit score doesn’t prevent someone from setting up their own recruitment…
Read MoreWHY DO RECRUITERS INSIST ON DOING THEIR OWN INVOICING?
One of the most common frustrations we hear at MAYACHI when speaking with recruitment directors is their insistence on handling their agency’s invoicing themselves. Phrases like “It doesn’t take too long” or “It’s quicker if I do it myself” are often just excuses and signs that agency owners are reluctant to give up control over…
Read MorePERMANENT FUNDING, IS IT WORTHWHILE?
Invoice finance is a staple of the recruitment industry and is widely used by agencies making contract and/or temporary placements. These types of placements require access to funds to pay candidates before the client settles the invoice. However, recruitment directors often ask MAYACHI whether they should consider using invoice finance to fund permanent placement invoices…
Read MoreWHAT CAN I DO IF A CLIENT REFUSES TO PAY MY INVOICE?
Every recruiter loves to celebrate when a deal is signed and a candidate is due to start on-site with a client. However, from a business owner’s perspective, the deal isn’t truly complete until the client has made payment. Most clients an agency works with will pay within the agreed terms, or occasionally slightly later, to…
Read MoreHOW CAN AN AGENCY REDUCE CURRENCY LOSSES?
Overseas placements are becoming increasingly popular among recruitment agencies, thanks to higher profit margins and growing opportunities with international clients. While the process of making these placements is often similar to placing candidates in the UK, one key difference is that international placements are typically not conducted in sterling. As a result, agencies must manage…
Read MoreWHO SHOULD AND SHOULDN’T START A RECRUITMENT AGENCY?
Over the years, MAYACHI has spoken with many individuals who have decided to start their own recruitment agency. Many of them have spent several years working in the recruitment industry, have a clear vision for their new business, and a defined end goal. However, there are also those with no recruitment experience who assume running…
Read More6 ADVANTAGES OF OUTSOURCING YOUR BOOKKEEPING SERVICES
Bookkeeping is a core accounting function that involves recording a company’s financial transactions, such as bank payments and receipts, logging sales and purchase invoices, analysing expense and mileage claims, and reconciling bank accounts and credit card statements. Traditionally, bookkeeping was handled by semi-qualified accountants. However, with the rise of accounting software and automation technologies, many…
Read MoreWHEN SHOULD YOU CONSIDER SWITCHING YOUR INVOICE FINANCE PROVIDER?
There are many different invoice finance providers in the UK that offer funding for contract and temporary placements, including banks, factoring companies, and pay-and-bill providers. Each provider has its own risk policy that determines which debts they can fund, how much funding they will offer, and how they charge for funds in use. This means…
Read MoreSHOULD I REGISTER MY RECRUITMENT AGENCY FOR VAT?
Over the past few months, MAYACHI has spoken with several startup recruitment agency directors who have questioned whether they should register for VAT as a new business. In some cases, they have consulted their accountants, who advised that, since their turnover is currently below the VAT registration threshold of £90,000, registration is not required. However,…
Read MoreFINANCIAL CONSIDERATIONS YOU NEED TO BE AWARE OF WHEN SETTING UP A RECRUITMENT AGENCY
The decision to start a new recruitment agency often brings a mix of feelings from apprehension to anticipation, particularly for directors transitioning from employment into business ownership. While launching a new venture is an exciting opportunity, it is crucial to understand the financial responsibilities involved, especially when moving away from the stability of a guaranteed…
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