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Financing Temporary Staffing and Recruitment Firms in the UK

With the recent global economic recession and its slow recovery, many businesses in the UK are still not willing to hire more people. Besides banks, venture capitalists and some other secondary lenders have stopped lending to staffing and recruitment firms. This situation has put these firms to severe cash flow issues and ultimately the staffing and recruitment firms in the UK have to compromise on the quality of service and the prospects of business expansion they used to provide.

The recruitment industry in the UK is a multi-billion pound industry. With the aim to alleviate their problems, we at 1st Commercial Credit have put together a wide range of specialist financial solutions to keep cash flowing smoothly.

Why cash flow is important to these firms?

Your people are your lifeblood. This is why it is important that they are not left waiting for payment, while you await to be paid by your customers. Hence cash flow is most demanding for your firm due to:

  • Your people expect to be paid daily, weekly or monthly. If they don’t get paid then this will impose problems from both your team and your client
  • The established multi-branch high street agencies have enormous cash reserves and pose huge competition to their smaller counterparts
  • Your industry’s demands for cash flows are enormous. According to “The UK Insolvency Helpline Debt Advice Service Business Rescue Team”, the most common reason for recruitment firms going into liquidation or administration is the cash flow difficulties in paying temporary employees.

More information on Factoring Recruitment Agencies

Invoice Discounting Rates Starting at 1.59% to 3.5%

  • No monthly requirements.
  • No financials needed.
  • No setup fees

Our aim is to ease the financial pressure on you so that you can do what you do best viz.: find people, place people and keep people happy. Towards this objective, we’ve put together a wide range of specialist financial solutions to keep cash flowing smoothly. Whether you’re a start-up or an established business, our following tailored services will help meet your varied needs:

Factoring:

This is a flexible form of finance that releases money against unpaid sales invoices and provides you full control of your cash flow. Many factoring businesses overtrade as their sales force often bring in deals that sound fantastic, such as a contract for 20 temps, but the reality dawns later that these temps need to be paid. If your company uses factoring, it will not need to worry about being able to pay workers

Invoice discounting:

Our confidential invoice discounting provides an injection of cash into a business by releasing money against unpaid sales invoices, without your clients knowing you’re using our service. You can submit your invoices online and our robust system facilitates you with online help to manage your finances

Payroll Finance:

Payroll finance takes care of all the key administrative tasks involved with ensuring temps are paid correctly, and on time, while also ensuring your compliance with tax and data protection legislation. Besides you can also avail our back office and payroll finance which is a fully outsourced single solution made up of a comprehensive payroll management service, a factoring facility and a credit insurance facility. Our payroll management service includes weekly/monthly payroll computation, payslip / remittance advice production, new starter set-up, leaver’s P45s, year-end P60s and P35, data archiving, Inland Revenue liaison, pay employer’s Class 1 NICs, pay the monthly / quarterly amount to HM Revenue and Customs

Debtor protection:

Recruitment and staffing companies of all sizes, from start-ups to multinationals, are vulnerable to the impact of bad debt. When your biggest asset viz.: the sales ledger is unsecured, one unpaid invoice can have a detrimental effect on cash flow and set-back years of profit and growth. When your clients go insolvent, you would be left to pay the temp or contract workers. This would accentuate the problem of keeping enough cash in the business to cover client failures. Our debtor protection solution is a low cost, easy to manage service that could protect you from potentially damaging losses if a major customer fails. It provides you security against a customer’s insolvency and non-payment of invoices.

A simple seven piece of information

If your business activities are suitable for our service offerings, you will be required to provide us with the following seven pieces of information:

  1. An up to date Aged Debtor Analysis.
  2. An up to date Aged Creditor Analysis.
  3. The last 3 years accounts or management accounts if it is a new company.
  4. A copy of your company's VAT certificate.
  5. A copy of your company’s certificate of incorporation (if applicable).
  6. A sample sales invoice.
  7. A sample contract if applicable.

Why 1st Commercial Credit?

Whether it is for permanent staff, temporary PAYE workers or self employed contractors, we provide flexible and attractive cash flow solutions. We have years of experience in financing the staffing and recruitment industry, helping them at all stages of development to enjoy better cash flow. Even if you have few assets, we can help you to raise funding, bridge the cash flow gap between temp wages and customer payment besides help protecting you from bad debts. To highlight some of our capabilities:

  • Our coverage and experience provide us with an in-depth understanding of the immediate challenges and longer-term opportunities in the sector, whether they are driven by regulatory change or economic climate
  • We can take responsibility for getting invoices paid, leaving your consultants to get on with the next assignment
  • We provide up to 95 percent of the value of your invoices on the same day you raise them, easing cash flow immediately.
  • We understand that your business is all about positive relationships. We provide our service with personal touch. We take time to get to know you and the sector in which you operate.

Invoice Discounting Rates Starting at 1.59% to 3.5%

  • No monthly requirements.
  • No financials needed.
  • No setup fees