Start-up recruitment businesses can find it tough to obtain traditional forms of finance — often because they lack evidence of trading. Customers could take up to 90 days to settle their payment which causes a huge credit gap.
In a bid to educate SMEs on how factoring could ease the cashflow burden on start-up recruitment businesses, Touch Financial designed a guide using an Infographic which clearly explains the factoring process alongside significant facts and figures.
Businesses in the recruitment industry have to pay for payroll of both temporary and permanent placements as well as covering their day-to-day overheads. This hinders the business from expanding as the funds are tied up in outstanding payments. Invoice Finance releases the cash needed to finance these expenses usually within a working day — the business no longer has to wait 60-90 days to get paid.
The credit control service is handled by the factoring company — they bare all the risks associated with defaults. Having upfront cash boosts the business’ bargaining power, enabling them to take advantage of early supplier discounts.
At Touch, we partner with specialist lenders that offer cashflow solutions to businesses in the recruitment sector. Through invoice finance, our lenders can release cash from assets that appear not to have value — such as timesheets.