Recruitment invoice discounting to improve your cashflow
Are you looking to improve the cashflow of your recruitment agency? Are you spending too much time chasing money for unpaid bills? Recruitment invoice discounting could be a good way to improve cashflow for your recruitment agency, also allowing you to raise working capital confidentially and preventing problems caused by late payment clients.
What is recruitment factoring?
Recruitment invoice discounting is a type of lending where the money you are advanced is borrowed against the value of your invoices. With recruitment invoice discounting you send your own invoice to your client and send a copy to the invoice discounting company.
Up to 90% of your invoice value will be paid in 24 hours by the invoice discounting company, resulting in more regular payments and improved cashflow.
The invoice discounting provider will collect the outstanding amount of the invoice. You don't have to worry about your invoices anymore and you'll have more working capital to invest in your business growth.
Benefits of recruitment invoice discounting
- 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.
- Confidential: your client doesn't know an invoice discounting provider is involved
- You have more working capital to put back into your business.
- Invoice discounting is more competitively priced than overdrafts and conventional business loans.
What does invoice discounting cost?
Unlike bank loan fees, invoice discounting fees are split into two parts:
- A Service Fee covers the day-to-day servicing of your purchase ledger. This can be between 0.5% and 3% of your turnover.
- Interest is charged against the amount of each invoice, usually at a fixed percent above the factoring company’s base rate.
Setting up a invoice discounting facility through Simply Business
- Complete our simple form to receive a call-back from one of our experienced factoring specialists to discuss your requirements
- You will then be referred to one of the Aldermore industry specialists who can either provide you with a email quotation or a face to face appointment
- If you are happy with the quotation, Aldermore will then discuss with you the next steps to putting a bespoke facility in place for your business