YOU MAY NOT BE AWARE OF THESE FIVE THINGS ABOUT INVOICE FINANCE.

Given that contract placements are contingent upon the agency paying the applicant before the customer makes payment, it may be concluded that there is a robust market for finance for recruiting firms. On the other hand, if your own organization has previously investigated invoice financing but ultimately decided against it due to certain misunderstandings, it is important to keep in mind some of these often ignored truths concerning invoice finance. 1 It is used by a large number of recruiting organizations. It has been shown via research that more than a sixth of recruiters are employing some type of financing against their sales invoices. This is equivalent to twenty times the national average of firms across all industries. It is becoming a fairly popular method of financing for recruiting agencies, as there are firms such as tbos that are also available to aid your company with the establishment of its invoice finance. 2 You are not required to offer personal guarantees, despite the fact that invoice financing providers often request them. Depending on the specifics of the situation, they may restrict the amount of personal guarantees they take or merely accept a fraud warranty. In the latter case, you will only be held responsible for your actions in the event that you perform a fraudulent act. 3 The price is lower than you would assume it is or would be. It is possible that the cost of financing against all of your bills for a whole year may be as little as about two thousand pounds. Alternatively, you could always choose to finance just the specific invoices that you want to be funded and pay for them individually. When it comes to funding further bills, there is no need that there be any responsibility there. 4 Even if you have a poor credit history, do not let that be a barrier. It is the strength of the company’s sales debts that determines eligibility for invoice financing, which is one of the finest things about invoice financing for recruiting agencies. A poor credit history is less important to an invoice finance provider than your agency raising simple, straightforward credit invoices to customers, provided that there is some guarantee for payment such as a signed timesheet. This is because your agency is more likely to issue credit invoices to customers. Due to the fact that recruiting agencies often generate high-quality receivables, invoice finance professionals have a tendency to have a favorable opinion of these recruitment firms. Not only are the transactions that are being conducted straightforward, but there is also a transparent audit trail that provides documentation, such as timesheets that have been signed. 5 Both large and small organizations are able to employ it There is no minimum size that your company needs to be in order to take advantage of invoice finance at this time. Although you may have imagined invoice finance to be a form of funding for recruitment agencies that have been in operation for a considerable amount of time and have reached a particular size, this is not the case. Because some invoice finance providers give you the opportunity to raise financing against invoices that are only worth a few hundred pounds, you might want to give it a shot right now. This is especially true when you take into consideration the large number of recruitment agencies that have utilized it to assist in their expansion. Would you be interested in learning more about the comprehensive package offered by TBO, which, among other back office responsibilities, can set up invoice financing needs to allow your company to become one of the numerous organizations that profit from this popular type of funding for recruiting agencies? Please contact the TBOS office at the following number: 0345 504 6333.