The benefits of using alternative finance to fund your recruitment business. In 1996, Jerry McGuire captured a spirit that has continued to resonate to this day. “Show me the money” is the 25th most frequently quoted movie line ever, becoming a mantra for many aspiring business leaders. However, while acquiring new clients and expanding your order book is impressive, it holds little value unless those earnings enter your accounts. This prompts the question: How can alternative finance reshape your agency business?
Clients can take up to three months to settle their invoices, all while ongoing bills demand immediate payment. And for temporary agencies, ensuring weekly worker compensation is paramount. This constant juggle necessitates maintaining sufficient funds to honour commitments.
Compared to traditional banks, alternative finance providers cater more flexibly to the evolving demands of recruitment businesses. This adaptability proves crucial, mainly when dealing with clients requiring rapid operational scaling within tight timeframes.
Swifter Access to Funds
Accessing required funds is as essential as having funds for future reinvestment to sustain business growth. Specialist recruitment financiers offer timely access to necessary funds. Even if client payments take 60 days or more, these providers ensure funds reach your account within a day or two, guaranteeing positive cash flow.
Efficient Credit Control
Ask any business owner what makes them uncomfortable; discussions about money often top the list. Despite delivering quality service and promptly invoicing, clients may delay payment. This delay adds unwarranted financial strain and affects credit and funding limits, impeding growth potential.
Certain alternative finance providers incorporate comprehensive back-office support into their recruitment solutions. This includes assuming the task of debt collection, allowing you to dedicate your time to billable endeavours.
Reduced Risk and Enhanced Assurance
In financial discourse, the term “risk” often surfaces. You can confidently undertake contracts of any magnitude by ensuring proper financial and back-office support. Our processes encompass credit assessments, due diligence, and debt protection as components of our 100% finance solution.
The key lies in partnering with a specialist financier well-versed in the recruitment market’s intricacies and capable of providing flexible support from inception to expansion.
Over the past 19 years, Simplicity has supported startup and growing recruitment agencies across finance, back-office management, and technology.
Editors note: This post was originally published on 7th January 2019 and has been completely revamped and updated for accuracy and comprehensiveness.
Read our latest blog – Five Steps to Enhance Your Business’s Credit Management