Running a recruitment business has never been more challenging. Talent shortages, fierce competition, and ever-shifting client expectations are already tough enough. But one of the biggest headaches recruitment agencies face today? Clients are taking weeks, or even months, to pay their invoices.
The Late Payment Challenge in Permanent Recruitment
Late payments are not just an inconvenience—they’re a systemic issue across the UK economy.
Widespread Issue
- Almost half of all business-to-business invoices in the UK are now paid late.
- Small businesses typically lose over £20,000 a year due to delayed payments, with many forced to close their doors as a result.
- The average overdue invoice is now settled around two months later than agreed, with payment delays steadily increasing year-on-year.
- In some cases, invoices are not being paid until more than 70 days past their due date—the worst seen since the pandemic.
Economic Impact
- Businesses across the country are losing the equivalent of more than two working months every year just chasing late payments.
- For around six in ten SMEs, late payments are a significant source of cashflow stress that can restrict growth and investment.
For recruitment firms specialising in permanent placements, this creates a significant challenge:
You’ve invested time and resources to deliver the right candidate, the client is delighted with their hire – but after all your hard work, you’re left waiting or chasing your hard-earned cash.”
The result? A constant squeeze on cash flow makes it harder to grow, reward your consultants, or invest in future business development.
What is Perm Finance and Why Recruitment Agencies Need It
Perm Finance is a specialist funding solution designed for recruitment agencies that focus on permanent placements. Instead of waiting weeks—or even months—for clients to pay, Perm Finance allows agencies to unlock the value of their invoices right away.
By using Perm Invoice Finance, you can:
- Access cash the same week you place a permanent worker.
- Eliminate cash flow uncertainty from late-paying clients.
- Free up working capital to grow your team and scale your business.
How Perm Finance Improves Recruitment Cashflow
With Perm Finance, recruitment agencies no longer need to chase clients or stress about debtor days. By converting invoices into immediate cash, agencies gain:
- Confidence to take on bigger permanent recruitment contracts.
- Faster growth opportunities without the wait.
- The ability to focus on client relationships and placements, not debt collection.
Why Simplicity is the Leading Partner for Perm Finance
At Simplicity, we specialise in recruitment funding solutions that work for your business. We fund permanent recruitment invoices up to 100% – so you get access to your money without the wait.
- Place the candidate.
- Raise the invoice.
- Get your cash released that same week.
It’s permanent recruitment finance made simple.
Ready to Stop Waiting?
Why let client payment terms hold back your growth? With Simplicity Perm Finance, you can keep your cash moving and your business growing.
👉 Get in touch today and discover how we can release 100% of your permanent recruitment invoice value, fast.