A recruitment company that is trying to establish its market positions can’t afford to deal with cash flow issues. This is why services like invoice finance can be particularly beneficial. Readily available and much more practical than loans, these recruitment agencies finance solutions are becoming more and more popular.
How does it work? The principle is simple and highly practical. You raise invoices and the factoring company makes an advance payment that can range between 80 and 90 percent of the invoice value. Once the client makes the payment, you’ll get the rest of the money, minus the invoice factoring company’s fees.
Recruitment agencies can choose among two solutions – invoice factoring and invoice discounting. Both of these deliver a range of specific benefits.
Invoice Factoring for Recruitment Agencies
This service enables you to get a cash advance for all of your unpaid invoices. This way, you’ll maintain cash flow even if you have to deal with slow paying customers.
Invoice Factoring a comprehensive solution. The factoring company takes control of debt collection and makes sure that your clients pay in a timely manner. Since you’re opting for this service, your clients will know that you’re working with an invoice factoring service provider.