WHAT IS INVOICE FACTORING?
Invoice Factoring involves selling your unpaid invoices to a finance provider in exchange for a prompt payment. Instead of waiting for the full invoice amount to arrive on its due date, you receive a high percentage of the value soon after you issue the invoice. The finance provider then follows up with your customers and collects the payments.
This method differs from Invoice Discounting in one key aspect: with Invoice Factoring, the finance provider handles collections on your behalf, which can reduce the time and effort spent chasing late payments. Invoice Discounting keeps responsibility for customer collections in your hands, and your clients may not realise that you use any kind of finance facility.
Why Recruitment Businesses Consider Factoring
Invoice factoring has long been a go-to finance option for agencies looking to:
- Access fast funding against outstanding invoices
- Improve cashflow to meet payroll demands
- Focus on growth without waiting for client payments
However, the traditional factoring model can come with limitations, such as:
- Long-term contracts
- Lack of transparency around fees
- Growth restrictions
That’s where our Recruitment Finance solution comes in.
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Recruitment Finance: A Flexible Alternative to Factoring
Our model is designed specifically for recruitment businesses — offering all the benefits of factoring, without the downsides.
With Simplicity, you get:
- 100% funding
- Full payroll and back-office support
- Credit control, invoicing, and collections handled on your behalf
- No hidden fees or charges
- No funding caps or concentration limits
We help recruitment agencies grow with confidence by giving them the cash flow, time, and tools they need — all in one place.
Factoring vs. Simplicity’s Recruitment Finance
| Feature | Traditional Factoring | Simplicity Recruitment Finance |
|---|---|---|
| Cash advance % | Typically 70–90% of invoice | Up to 100% of gross profit |
| Designed for recruitment agencies | ❌ | ✅ |
| Payroll & HMRC management | ❌ | ✅ |
| Dedicated back-office support | ❌ | ✅ |
Ready to Move Beyond Traditional Factoring?
If you’re using invoice factoring and it’s not quite working for your agency — or you’re exploring your first funding solution — let’s talk.
Discover how our Recruitment Finance solution can offer more freedom, more support, and faster growth.
“SIMPLE SWITCH PROCESS”
The move over to Simplicity says it in the title – a simple and uncomplicated process; the transition was excellent.
“ALL IN ONE SPECIFIC SOLUTION”
Simplicity could offer us exactly what we were looking for, which was an all in one recruitment specific solution.
“PEACE OF MIND”
Ultimately, it’s about peace of mind – we know that all our costs are covered and the money we have can be spent on growing the business.
“OPENED OUR EYES TO THE FUTURE”
Not only have Simplicity given us a solution that more than meets our current requirements, they’ve opened our eyes to what the future for our business could be.
“SUPPORTING FUTURE GROWTH”
I know with absolute certainty, Simplicity is going to support our future growth aspirations.
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As well as our unique Permanent Solution we also offer a Temporary/Contractor finance and back-office solution for growing recruitment businesses.