Top 5 Complaints with Invoice Finance – And Why 1PS Is Different?

Having certainty over cash flow and receiving an advance on invoices can be very appealing but there can still be drawbacks. Here are the top 5 gripes agencies have with their funding solutions and how we are different from traditional recruitment finance:

  1. Profitability Reduced

With fees and hidden costs invoice financing can mean companies will lose profit from the orders or services they provide. This can be a financial hit many have to take if they can’t afford to self-fund or wait for the cash to be collected.

With 1PS there are no set up fees, service fees or hidden costs. We offer 100% financing for recruitment agencies.

  1. Contracts Are Lengthy and Hard to Get Out Of

Agencies can get locked into extensive minimum contract periods when signing up for invoice funding.  If a company wants or needs to exit the agreement early there will often be a high cancellation cost.

1PS has no minimum contract period and we do not charge leaving fees.

  1. Restrictive Credit Checks and Guarantees

Normally applications for finance require a detailed business plan, background information for credit checks, personal guarantees and details of recruitment experience. This can be a barrier for many businesses applying for funding.

No need for detailed requests or personal guarantees to use 1PS.

  1. Negative Impact on Customer Relationship

Many agencies feel their customers will want to deal with them directly or that their customer relationship will be damaged when a client notices that a third party is involved with invoicing and collecting payments.

This is a common misconception, these days invoice finance is seen as a badge of growth and a sign of expansion in the recruitment industry.  In addition 1PS has a great reputation and prides itself on excellent customer service. We will remain sensitive to your customer needs as well as your own.

  1. Conflict of Company Culture

Recruitment finance providers may differ drastically to the agency they represent.  This only adds to anxieties with regards to company image. A lack of recruitment agency understanding on the part of the provider is a very real concern.

1PS brings together highly experienced professionals from the finance and recruitment industries. We offer a unique understanding and perspective of the support services required by a recruitment agency.

 

So that’s where we differ- 1PS has successfully been providing recruitment finance and outsourced administration solutions to the UK recruitment industry since 2017. With us, 100% recruitment finance, debt protection, payroll and credit control come as standard.

Georgia Burbridge

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