Posts Tagged ‘Invoice Finance’
HOW EASY IS IT TO MOVE FROM A PAY-AND-BILL SOLUTION TO YOUR OWN INVOICE FINANCE FACILITY?
When starting to make contract or temporary placements, a recruitment agency may initially decide to use a Pay-And-Bill solution which looks after the client’s invoicing, funding of the candidate payments and distribution of profit minus charges based on when the timesheet is approved. These facilities work extremely well in the early days of a recruitment agency’s…
Read MoreWHY INVOICE FINANCE COMPANIES SOMETIMES SAY “NO” TO CONTRACTOR FUNDING
Invoice finance is a common funding solution for recruitment agencies making contract and/or temporary placements. This arrangement provides funding against client invoices, normally to a pre-payment of between 80-90% of invoice value which should be sufficient to pay the candidate until the client makes payment. Invoice finance companies like to provide funding against contract/temporary placements…
Read MoreHOW TO SECURE AN INVOICE FINANCE ARRANGEMENT FOR A NEW RECRUITMENT AGENCY
When a new recruitment agency launches, its directors may initially look at making permanent placements to build up some cashflow as they do not believe they would be eligible for funding on contract placements. They may also look at Pay-And-Bill solutions as a way of funding their contractors without understanding that this can be an expensive…
Read MoreINVOICE FINANCE COSTS EXPLAINED
Invoice Finance is often a key requirement for recruitment agencies making contract/temporary placements as it provides the funds to pay the candidates before the clients make payment. Although the facility can appear straightforward, understanding the jargon around the charges and how they are calculated can sometimes be alien to a recruitment director. When I meet with potential…
Read MoreHOW DOES INVOICE FINANCE WORK FOR RECRUITMENT AGENCIES?
Invoice finance is required by most recruitment agencies that are making contract or temporary placements and provides the funding to pay the contractors before the client makes payment. One of the questions that recruitment directors often ask us is how the funding arrangement works as it can seem like a very complicated process. At MAYACHI…
Read MoreWHAT FACTORS CAN AFFECT YOUR INVOICE FINANCE FUNDING?
Funding for a recruitment agency making contract and/or temporary placements is vital as the candidates will need to be paid often before the client makes payment on the invoices raised. If the finance arrangement has been set up correctly, there should be no issues with the prepayment being provided to cover the candidate payments until the client makes payment.
Read MoreIS YOUR INVOICE FINANCE ARRANGEMENT THE BEST DEAL FOR YOUR AGENCY?
External funding is often required when a recruitment agency makes contracts or temporary placements to bridge the gap between when the client makes payment on 30+ day payment terms and when the candidates will need to be paid within 5-7 days. This funding gap can easily be filled with external funding either from a pay-and-bill…
Read MoreWHY MANAGEMENT ACCOUNTS ARE IMPORTANT TO THE GROWTH OF YOUR RECRUITMENT AGENCY?
The vast majority of recruitment agencies are set up and run by Directors who used to be recruiters in a previous guise. Although they are fantastic at recruiting and making placements, often they do not have the aptitude or interest in accounting unless absolutely necessary. Even if their accountants produce management accounts, they may not…
Read More10 TIPS ON STARTING YOUR OWN RECRUITMENT AGENCY
Each year, more than 8,000 recruitment companies are formed at Companies House with many of them being set up by first time Directors. These Directors are often top-billing recruitment consultants who are fantastic at making placements but have very little experience of running their own company. If you are considering setting up your own recruitment…
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