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Getting temps and contractors correctly paid, on time, every time is one of the most important elements of running a temp/contract desk and always has been. The challenge is that your candidates will often need to be paid every week or every month, with your customers generally paying on credit terms of between 30-60 days (sometimes longer). This leaves a gap between paying candidates and receiving money from your customers.
Trust is essential between your candidates and you as a recruitment business. If they aren’t paid on time, this could have a negative impact; on occasions, we have seen temps move agencies to get the guarantee of timely payments. Also if your payroll processes are not efficient, the impact may not be just on your candidates, as customers want to keep their candidates motivated too so there could even be loss of customers.
For most recruitment businesses, this is where invoice finance can really help to bridge this gap, cash is key and using a method of invoice finance to facilitate this is very common in the recruitment market.
In the UK, there a numerous methods of invoice finance that business use to alleviate their financial pinpoints, so that you can focus on your business without the cash flow struggles. There is a choice of three main facilities in which recruitment businesses use:
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