When Marc Ryzer and Tiffany Rogers decided to take the plunge and set up their own recruitment business, having the necessary cash flow to pay their workers and grow their business was of particular concern.
So many recruitment businesses, particularly those looking for rapid growth in the temporary and contract market, very quickly run into difficulties when they find they don’t have the steady flow of reliable money to both pay their workers but also to invest in growth. That’s where Simplicity come in.
What We Did
It’s a familiar scenario for many recruitment professionals; Marc Ryzer was sales director for a recruitment company working for a boss he didn’t rate, and who had very different ideas and priorities when it came to running a recruitment business.
Finally Marc decided to leave, and that same day received an email from our Business Development Executive Sam Glover asking, “Have you thought about setting up your own recruitment company?” The two met the following day. A meeting that led to the formation of Logical Recruitment Partners and a success story that Marc says would not have been possible without Simplicity’s involvement.
Marc and Tiffany recognised that some funding support was going to be necessary, but it would have been easy to underestimate just how much if it weren’t for the expert guidance of the Simplicity team.
“A bank were prepared to lend us a one off, fixed sum of £100,000, but it didn’t feel right. Now I realise we need a lot more than that, as well as a recruitment finance solution that is flexible, to run the business we’ve won” said Marc. “They also showed a lack of recruitment knowledge, calling our clients ‘debtors’. They are our customers!”
“Simplicity was different. I really liked Sam Glover, and was reassured his responsive and attentive approach would be continued by the dedicated partner support department. I was confident they would provide payroll and administrative support including HMRC reporting and respond to day-to-day worker enquires. We received our margin straight away, which was so important for us starting out.”
Unlike a typical solution from a bank, Simplicity relieved not only the financial burden for Logical Recruitment Partners, but also the administrative and compliance pressures. Our complete solution has supported Marc and Tiffany with payroll processing through to invoicing and payment chasing. No concentration limits and unique credit limit solutions mean that, unlike a bank, the Simplicity solution has supported their rapid growth. But it has also protected their business during the critical early stages of development.
As a business offering both temporary and permanent recruitment, Logical Recruitment Partners have also been able to benefit from our perm finance solutions, meaning cash flow management has been further supported by 100% finance of their permanent placements.
“Simplicity played a major and important role in the success of our new business. If someone was going to start up their own recruitment company I would recommend Simplicity.”
An ambitious young company with the right support for unrestricted, rapid growth
In less than a year, Marc and Tiffany’s recruitment business was already heading for a turnover of £1 million. That’s impressive given an estimated 50% of start-ups fail within the first two years.
One of the main complaints we hear from recruitment businesses is they feel disempowered and micro-managed by other finance providers. But as far as Marc Ryzer is concerned this couldn’t be further from the truth in their relationship with Simplicity. “The two words I would use to describe Simplicity are accommodating and adaptable.”
Simplicity’s consistent weekly cash has enabled Logical Recruitment Partners to stay in control of the critical lifeblood of their business – predictable cash flow, increase their headcount confidently, and focus their efforts on managing their existing clients and winning new business.
“I know with absolute certainty, Simplicity is going to support our future growth aspirations.”
Marc Ryzer, Logical Recruitment Partners
Simplicity played a major and important role in the success of our new business. If someone was going to start up their own recruitment company I would recommend Simplicity.
Marc Ryzer, Managing Director, Logical Recruitment Partners