Many recruitment agencies in the UK have found a way to boost their performance and dominate the market.
Business owners are actively seeking for alternative funding solutions to grow their businesses, invoice finance being one of these solutions that help them thrive even in competitive markets.
With invoice finance, it sure is nice to see an instant cash transfer into your business bank account as soon as an invoice gets issued.
This enables entrepreneurs and business managers to focus on exceeding their sales targets and leading their teams rather than worrying about cash flow problems.
This type of funding is an excellent solution for recruitment agencies as they have a lot of work placements that create a lot of invoices and dealing with invoice payment delays would be very detrimental to their businesses.
It appears that typically UK recruitment consultancies are owed a whopping £6 billion in outstanding invoices. Under these circumstances, they have to use invoice financing as a way to keep a healthy cash flow and avoid financial troubles.
How Invoice Finance Works
Check out this short video on how Invoice factoring works to help you and your business
If you are are in recruitment and considering Invoice Finance, there are many companies that provide this service, so you should do some research to make sure you land the best possible deal. This applies even if you’re already using this method in your business today.
Here are a few points to keep in mind when seeking for Invoice Finance services:
Are There Any Hidden Costs?
Finance providers aren’t charities, so you should expect to pay additional costs. Typically the costs are in a certain percentage of your invoices. Nonetheless, you need to check the contractor’s conditions in great detail, as some of them will also charge you for the following:
– Service setup
– Service fee
– Insurance (this is true in case of factoring)
– Leaving fee
You should be careful and consider all these costs before choosing your finance provider.
What Are The Terms And Conditions Of The Service?
Before signing any agreement, you should carefully read and make sure you fully understand the terms and conditions.
Reading and understanding the T’s and C’s is how you can avoid putting your business in various challenging situations, such as being penalised for leaving a long-term contract.
The notice policy is something you have to pay close attention to. Check whether charges apply in case you want to renew or resize your funding option.
Not all providers charge, but there are some who do, so consider yourself warned.
Is The Finance Provider Going To Save You Time?
Processing contractors used to be tedious and time-consuming tasks for agencies. Nonetheless, thanks to the technological progress, this process has become incredibly simple. Most finance providers can link to your financial software, thus saving you from spending your time on:
– Credit check
– Invoicing clients
– Making payments
Being able to link to your financial software enables you to keep everything in one place and have better control of your financial operation, while also saving a lot of time and money.
The above article provides some help on how to find the best invoice finance deal. Do your due diligence and be wise before signing up.