Your world of recruitment cash flow can feel a little bit like needing to ‘rob Peter to pay Paul’ sometimes. A vicious circle of contractors/temps in, invoices out, wage bills out, yet still no client payment in.
Know the feeling?
You’re not alone. This is typical of recruitment agencies across the country, regardless of what their specialist employment services are.
Recruitment agencies face two major problems in their business day-to-day operations – cash flow and administration. This problem isn’t exclusive to start up agencies either. It’s a predicament for expanding and growing agencies too.
So, back to that infamous ‘robbing Peter to pay Paul’ scenario again. That’s fine, we guess, the whole time you have funds in your ‘pot’. Yet we know all about the pressures your industry is under, which makes us know that your ‘pot’ quite literally vanishes before your eyes. And it’s not because you don’t have the business.
Quite the opposite in fact...
You win a new client
You deploy contractors and temps
Week end, month end and you issue your invoices to the client
At the same time you also have to pay your existing contractors/temps as well as finding the capital to pay the new set of staff for your new client
This would be fine if the client paid on the same day. But they don’t – who does? Instead they take 30 days, some even more. Leaving you with staggering wage bills; plus your own overheads to fund.
And as for the admin anguish... Well, how can you concentrate on growing your business when you’re not only stressing about cash flow but also juggling all the admin that goes with it – time sheets, wage slips, sickness, holiday pay?
Here’s where Calverton Finance’s PayFactory steps in – easing your cash flow problems and releasing your margin on all issued invoices whilst dealing with your entire administration back office issues too, with complete payroll management and credit control facilities.
What’s more, we are aware that we need to protect your premium brand – everything that comes out of PayFactory is under your own branding.
In short, here’s how it works...
The signed timesheets are sent to your dedicated Calverton PayFactory contact
PayFactory then pays your contractors/temps, plus dispatches their payslips
Your invoices are raised and sent to your clients by PayFactory
In the meantime PayFactory pays you your margin within 24 hours
PayFactory performs telephone collection activity on your behalf in a polite and courteous manner, protecting your brand at all times.
Yes, it really is that easy. With our transparent, open and honest payment structure, your business books are healthy, liquidity is strong and growth is achievable – all of which enable you to present excellent finances for partners, shareholders and new business interests.
So what are you waiting for? In the rapid world of recruitment don’t risk sinking in a sea of admin and running out of readies, instead, call our expert Recruitment Financing team today!