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:
- 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.
- 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.
- 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.
- 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.
- 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.