Recruitment factoring solutions for your business

Are you looking to improve the cashflow of your recruitment agency? Are you spending too much time chasing money from unpaid bills? Recruitment factoring could be a good way to improve cashflow for your recruitment agency and prevent problems caused by clients' late payments.

What is recruitment factoring?

Recruitment factoring is a type of lending where the money you are advanced is borrowed against the value of your invoices. With recruitment factoring you send a copy of an unpaid invoice to the factoring company. Up to 90% of invoice value will be paid in 24 hours.

The factoring company will collect the outstanding amount of the invoice so you no longer have to chase up clients for payment.  And you won't have to worry about holding enough money in the bank to pay your staff and overheads.

Benefits of recruitment factoring

• When you issue an invoice you will know when it will be paid.
• No long term loan – the loan is repaid each time a client settles their invoice.
• The facility grows with your business so no need to keep increasing your overdraft.
• It saves you time – the factoring company manages your sales ledger for you.
• You have more working capital to put back into your business.
• Factoring is more competitively priced than overdrafts and conventional business loans.

What does factoring cost?

Factoring fees are split into two parts:

1. A Service Fee covers the day-to-day servicing of your purchase ledger. This can be between 0.5% and 3% of your turnover.
2. Interest is charged against the amount of each invoice, usually at a fixed percent above the factoring.

Setting up a factoring facility through Simply Business

1. Complete our simple form to receive quotes.
2. Compare the quotes and the factoring team at Touch Financial will contact you to discuss them.
3. One of their experts will help you to decide upon the best facility and factoring company for your business needs.