Factoring and recruitment
With the economy getting back on its feet from the deep blows of the recession, recruitment is also starting to see growth return and many recruitment businesses are seeking to capitalise on this and gear up for growth in 2015.
As many small to medium sized businesses find, there is often a gap in the cash flow position from accounts payable to outgoings, especially at times when you need it most, such as periods of high growth. The best position to be in is to have a facility in place so that when you need a cash flow injection then you know you have the ability to access working capital without the need to firstly find a suitable finance partner, then go through their checks and process to enable a facility to become active.
As the economy further revives going into 2015 many recruitment businesses will be looking to capitalise on opportunities for organic growth and the possibilities of achieving an increase in profitable client accounts. More accounts means an increase business costs with increased staffing and overheads, so how do you close the gap until your invoices clear?
Finding the right factoring company
Hugh Craen, FindmeaFactors prime mover, can work you to identify exactly which factoring companies will best fit the profile of your business, help you to prepare the business and its financial information, so that it can achieve the best terms from a factoring deal, and you can see more on this at our top tips on how to present your business to a factoring company.
When you first contact us we can quickly assess your requirements and advise on the most suitable invoice finance company to suit the needs of your business. Unfortunately many businesses looking at invoice finance focus purely on the advance percentage , i.e. the percentage that will be advanced against the invoices and forget to look at other aspects of the deal such as concentration limits and individual credit limits on their customers. This particularly relevant in start up businesses where there is no trading history to look at. To obtain the most favourable terms it is important to present a sound proposal to the invoice finance companies and we can ensure that your proposal is correctly presented.
We can then advise on which factoring company will provide you the the best terms for an arrangement, as well as working with you to ensure your business is well represented and not left with a blind spot once a contract has been signed.
So if you are looking to secure the growth of your recruitment business with a strong cash flow position and a reliable invoice factoring partner then speak to us about what your best options are in the market right now.