HOW TO SECURE AN INVOICE FINANCE ARRANGEMENT FOR A NEW RECRUITMENT AGENCY

Two hands shaking reflecting an arrangement has been made

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…

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6 WAYS TO INCREASE THE VALUE OF YOUR RECRUITMENT AGENCY

6 Ways To Increase The Value Of Your Recruitment Agency

Selling a recruitment agency is a dream for many new recruitment directors, especially if it can be sold for a life changing amount of money. However, due to poor planning, this may not be the case and often, the company will end up undervalued or continue to trade indefinitely. When considering selling a recruitment company, it…

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HOW DOES CIS AFFECT YOUR RECRUITMENT AGENCY IF YOU ARE A NEW START UP?

Hard hat on a work bench

As a recruitment agency start up, understanding how CIS can affect your new business is paramount. The Construction Industry Scheme (CIS) was set up in 1971 to combat the tax evasion occurring within the construction industry when paying subcontract workers. When we think of CIS Placements for recruitment agencies, the tax system overall has become more…

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INVOICE FINANCE COSTS EXPLAINED

Invoice 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…

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PAYE CONTRACTOR RATES – HOW TO CALCULATE THE TRUE CONTRACTOR COST

Black calculator with the words "True Cost" on the display screen

When paying a candidate via an Umbrella (or Limited Company), the pay rate that is agreed and paid over includes all the costs of the candidate. However, if a candidate is paid via the agency PAYE scheme, then the agency has several costs based on the candidate’s pay rate that need to be considered to…

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WHO SHOULD START A RECRUITMENT AGENCY? 

We’re is often asked “Who is the ideal person to start their own recruitment agency?” and there are many different answers to this question. Sometimes the best recruiters do not always make the best directors of their own recruitment agency as they cannot manage their responsibilities when it comes to running a company, managing their cashflow…

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HOW DOES IR35 AFFECT YOUR RECRUITMENT BUSINESS? 

HOW DOES IR35 AFFECT YOUR RECRUITMENT BUSINESS? 

Even though the IR35 legislation has been around since April 2000, there has always been confusion about how it works and how it affects a recruitment agency. This was exacerbated in April 2017 in the public sector and in April 2021 in the private sector, when the IR35 rules changed to put the responsibility of the…

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CASHFLOW TIPS YOUR RECRUITMENT AGENCY NEEDS TO KNOW 

Two wooden blocks with the words top tips on them and cashflow written in purple underneath

Recruitment agencies are always good at generating clients, registering candidates, and making placements, but when it comes to managing the company cashflow, it can be a minefield to the Directors. Understanding when clients will make payments, when to pay suppliers and how much is due to HMRC can make understanding the company cashflow is a complex…

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THE TOP 5 HAZARDS OF INTERNATIONAL CONTRACT PLACEMENTS

Black warning sign overlapped over an image of business men and women.

Expanding into the world of overseas contract placements can be an easy way of increasing an agency’s turnover and profitability if they can identify a client requirement within their market. Many of the recruitment processes are the same when making international placements except the profit margins are often much larger which makes this very appealing for…

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MARK-UP VS GROSS PROFIT IN RECRUITMENT – WHAT’S THE DIFFERENCE?

Mark up vs gross profit coloured button scale

Recruitment agency fees, whether they are permanent or contract/temporary placements, are always based on the profit generated. These fees will often fall into two categories, a mark-up percentage or a gross profit percentage. However, many recruiters ask me during our initial consultation call “Stewart, mark-up vs gross profit in recruitment- what’s the difference?”. WHAT DOES MARK-UP MEAN?…

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