If you’re reading this and you’re in the recruitment business, then you will be well aware of the inherent shortfall that occurs in the industry- when it can take clients up to 3 months to pay their invoices but contractors, overheads and salaries need to be paid in the meantime!
A chronic late payment culture doesn’t help matters, with almost half of the UK’s small and medium-sized enterprises (SMEs) being paid late, at an average of 72 days . That represents £26bn owed to those businesses who desperately need it to stay afloat
Cash flow is the lifeblood of a business and research shows time and again that more small business failures are due to poor cash flow than anything else.
Agency owners can experience extreme pressure ensuring they have enough cash to honour commitments, grow their business and avoid Insolvency. This is why 40 % of SME’s seek alternative finance to help bridge the cash gap.
The Old Solution
Traditionally the only choice of funding available to recruitment agencies was with the banks. Now alternative finance providers, like 1PS, are an option and are more accommodating to the nuances of the recruitment industry.
How Can Alternative Finance Make A Difference To You And Your Agency Business?
Specialist recruitment funders’ can provide you with access to the finance you need, when you need it, enabling you can reinvest in your business and fuel its continued growth. Here at 1PS we also provide effective credit control as part of our back office support so you don’t have to waste time chasing debt. On top of that our expertise and technology provide peace of mind and mitigate risk, as all our processes include credit checks and due diligence with debt protection provided as part our 100% finance solution.