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Recruitment Finance: There is another way.

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    Recruitment Finance: There is another way.


    Recruitment Finance: There is another way. Less than one in ten (9%) of small businesses submitted applications for financial assistance during 2022. Marking the lowest percentage since the inception of SBI records. Simultaneously, the percentage of applications approved (43%) has also reached an unprecedented nadir.

    Among those pursuing financing, the majority (61%) opted for conventional products like overdrafts and/or loans. A quarter (25%) explored asset-based financing avenues, including invoice finance. At the same time, smaller cohorts explored peer-to-peer platforms (7%) and crowdfunding (5%) for funding.

    One in ten (11%) small businesses intend to shut down, sell, or reduce the scale of their operations within the following years. This translates to over half a million businesses contemplating such decisions. In an era marked by remarkable growth in the recruitment industry, how is this trend affecting nascent agency owners striving to establish their ventures?

    Options Available

    The answer might lie in a lack of awareness concerning the options available – including alternative financing. Since the recession, there has been a notable shift among recruitment agencies, with many veering away from conventional lenders in favour of specialised recruitment finance providers. This shift can be readily understood.

    Once a mainstay of financial backing for both startup and established businesses, banks and similar entities have encountered constraints on their lending capacity, consequently, agency owners have been compelled to reconsider their funding avenues. Naturally, if fewer entrepreneurs can access the necessary funds promptly, there’s a reduced cash flow accessible for reinvestment into the agency, hindering potential growth opportunities. This predicament prevents agencies from optimally capitalising on the current market’s prospects.

    How Simplicity Works

    Enter solutions like Simplicity’s 100% financing. Imagine securing a lucrative contract to deploy a workforce starting next week. Can you ensure timely payments for the workers until your client settles their invoice? Our 100% recruitment finance solution ensures funds are available when needed, facilitating weekly worker payments and safeguarding your margin. In place of grappling with delayed client payments and concerns over meeting expenses promptly, we shoulder those responsibilities on your behalf.

    While access to suitable finance is pivotal, the presence of adaptable systems to support evolving agency needs is equally crucial. We launched GEMS – a dedicated end-to-end workflow solution and CRM tailored for recruitment. This resource, offered free to Simplicity customers, streamlines processes by integrating front and back office systems. GEMS has proven to significantly save recruiters time by covering everything from job bookings and client and candidate management to timesheet and payroll oversight, invoicing, credit control, and reporting. This reclaimed time can be invested in engaging with candidates and bolstering business development.

    The recruitment landscape is transforming. Demanding that enterprising recruiters capitalise on available opportunities—the pace of your growth and the extent of your profitability rest in your hands. Our role is to provide the technology and support to fuel your agency’s aspirations.


    Editors note: This post was originally published on 26th March 2018 and has been completely revamped and updated for accuracy and comprehensiveness.