Temporary recruitment is a growing sector. Working practices are changing and with the gig economy booming, there is more call for temporary workers. There are opportunities for recruitment companies to grow. However, if you don’t have control of your cashflow, then you are likely to miss out.
Invoice financing is one of the best alternative funding solutions out there to help recruitment companies grow. Here are some of the benefits of invoice finance as a funding solution for temporary recruitment companies:
No Long Wait For Payment Of Invoices
One of the biggest challenges for temporary recruitment companies is dealing with the delay in the payment of invoices from other companies. Most companies you work with want a long lead time so that they can manage their own cashflow. Even if they pay the invoice within the agreed timeframe, you can still be kept waiting. Since almost one in three invoices are paid late in the UK, you can end up waiting even longer.
With invoice financing, you can claim the majority of the invoice amount from the moment that you submit the invoice. You don’t have to wait around for it to get paid. If you need the cash, you can access it. If the long wait on getting invoices paid is stopping you from funding your growth, then invoice financing could be the cash flow solution you need.
Things change. Business can be unpredictable. In order to deal with that, you need to have the ability to be flexible. When everything is running smoothly, you can probably afford to wait for your invoice to be paid. But if things are a little rough or something unexpected comes up, then you need to be able to get hold of your cash quickly.
With invoice financing, you can wait for invoices to be paid when everything is running smoothly. But, if you have employees who need paying and an invoice is outstanding, then you can choose to get the cash into your business then and there. There is no waiting for approval — no paperwork to complete. You have the ability to get the money you need when you need it.
Protect Your Relationships With Your Clients
Temporary recruitment is all about building relationships. You need solid relationships with your clients and your employees. Nothing sours a relationship faster than arguments over money. If you have to chase your clients for payment, or you are not able to pay your employees on time, then the whole thing falls apart. Asking for your clients to pay invoices in a shorter time period puts a strain on them. It can be enough to make them look elsewhere.
Invoice financing provides you with the means to get the cash you need to run and grow your business without having to risk the relationships that you have put so much effort into building.
Protect Your Cashflow
Sometimes it just works out that your salary runs and bill payments clash and the dates for invoices to be paid just don’t line up. Invoice financing gives you the tools to deal with these situations. You can get the money in earlier, when you need it. This means you can always stay one step ahead of the game and plan for a successful future.
Find out more about invoice finance with Cashbook Finance by calling 020 3239 0699.