Invoice factoring for a recruitment company
Mon, 03/16/2009 - 22:06
My name is Cheryl I run a recruitment company based in London. I have two questions which would be great if you could help me with:
A) Do you consider 100% Perms on New start ups? (or what % of perms would you consider).
B) What is the minimum turnover you can help with.
All the best,
Cheryl
Hi Cheryl,
Many thanks for your enquiry.
The simple answer is yes. However, due to the potential for permanent staff leaving the employment shortly after they have been placed and the resulting potential sale ledger dilution this could create for the funder, many lenders will take into account the following when underwriting:
- Industry sector – If for example the placement is for professional staff then they are less likely to leave the employment over a warehouse worker for instance.
- Is this a short term requirement for funding against perms? If yes then the lender could set time parameters (in the case of a new start business) for the concentration of perms to become diluted.
- Is there additional security on offer for the lender in order to support the perceived additional risk 100% perms creates?
- How much is the advance to the business. The lower the exposure to the lender the more likelihood they will ‘take a view’ when underwriting.
I hope this helps, if you have any more questions please feel free to call one of our experts on 0845 388 9725.
Katerina