In 2017, it was reported that late payments were costing the UK economy over £2.5bn a year, with the Federation of Small Businesses (FSB) finding that the average small business owner spends between 1-2 days chasing invoices each month. Over the course of a year that’s up to three weeks of selling time lost through chasing clients for unpaid invoices.
Agency owners will be aware that it can sometimes take between 60-80 days for a client to settle their invoice, leaving them potentially short of the cashflow needed to pay their contractors every week. The knock-on effects of this can be serious, affecting recruitment entrepreneurs both professionally and personally.
So, what can recruitment business owners do about it all?
Cash in your pocket every week
Having supported the growth of thousands of recruitment businesses over the past 15 years, we have first-hand insight into the key challenges facing recruitment business owners – with cash flow being the primary concern for most if not all of them.
Cash is king and as a Simplicity partner, agency owners get access to 100% Recruitment Finance (available for Contractor/Temp and Perm Placement agencies). No more waiting 30+ days to get paid. You receive 100% of your margin within a few days of raising an invoice and your contractors get paid every week.
Plus, debt protection, payroll and credit control comes as standard.
These benefits bring a two-fold advantage to agency owners. First, it removes the worry that many agency owners have regarding their cash flow. Second, it frees up time spent previously dealing with payroll and credit control, which can then be spent nurturing key relationships with candidates and clients.
Did you know?
We have a payroll team that have been paying contractors each week for over 15 years, processed over 1.5 million timesheets and paid over £580 million worth in payslips. No matter the contract size, our team will pay your workers on time, every time and they will also take care of your weekly HMRC obligations.
And when it comes to credit control, we have an unrivalled team that have collected over £770 million during the past 15 years and counting. Recruiters have access to credit control notes, making them aware of any potential issues that might delay payments.
This is where GEMS comes into the mix.
As part of our recruitment solution we also provide Simplicity Partners with GEMS technology. GEMS is an end-to-end CRM & workflow solution specifically designed for recruiters. It combines your front and back office processes into one simple system, removing the need for double entry.
GEMS automatically generates invoices from timesheet submissions or confirmed perm placements, allowing you to set invoice preferences for clients (email or post) and make adjustments, all at the click of a button.
Recruiters can keep an eye on the status of client payments with real time debtor information and manage disputes at the click of a button. All of this should help your business be more efficient, reduce costs and save time.
Let Simplicity help you achieve your growth aspirations today.
