Last Updated on Dec 20, 2019 by James W
For startup recruitment agencies, there are more than enough hurdles to jump and lists of to-dos to work through before your business is up and running at its optimum. One of the foremost issues for any startup in any industry is, of course, finance. For a recruitment agency, this is of even more concern as there is a constant flow of money in and out of the business; in from client invoices and out to workers, and not necessarily in that order. Timing is essential to balance your funds and a recruitment finance partner could help you do this.
Having enough money accessible to make payment to your workers and temps, before receiving payment from your client, should you need to, is vital. A small business is unlikely to have surplus funds for this kind of coverage just sitting around. Your options to ease this transaction, therefore, are to tap into some financial assistance through either invoice factoring, a bank loan, or you could consider working with a recruitment finance partner, which may well be most beneficial for your recruitment agency startup.
New Millennia are such a finance partner. They have worked with startup recruitment agencies for over 19 years and have bespoke solutions for the back office management, finance and funding of your recruitment agency; more importantly, theirs is 100% funding, something which can not be found with invoice factoring.
Engaging a finance partner may sound like a more daunting or involved prospect than securing a bank loan initially, so take note of these benefits in order to make an informed decision when you weigh up your best option for financing your recruitment agency.
Benefits Of Working With A Recruitment Finance Partner:
> Money Management
With a finance partner, you’ll gain more than just a cash injection into your bank account; you’ll get a better-regulated cash-flow for the recruitment agency. With New Millennia your profit will be paid to your agency in full, that’s 100% weekly and the debts collected from your clients weekly too, with no minimum monthly or weekly fees, the same cannot be said for invoice factoring or a bank loan!
> No credit checks
Although possible, it’s highly unlikely that you will attain a loan as a startup recruitment agency, and if you can, you’re likely to be limited in choice and flexibility; for this, you need good credit, which you won’t yet have gained. Securing a bank loan also takes time, approval for a loan could take a matter of weeks to a matter of months. Utilising the option of New Millennia’s recruitment funding and finance services eliminates this concern. With no credit eligibility check needed, you need no personal guarantees to secure the financing, and there will be no debentures against your business either. You will have an agreed credit limit which you must work within; this is one of New Millennia’s three golden rules!
> Support & Peace Of Mind
Working with a recruitment finance partner gives you support, the support that you need to be able to carry out your role as a recruitment agency to the very best of your ability and not concern yourself with the financial side of operations. This can be left to a body who understands deeply, the needs of a recruitment agency as well as the finances. The finance solutions which New Millennia provide remove the concern of when invoices need to be chased or workers need to be paid, and if there is enough money in the bank for this to happen; New Millennia absorb all of this responsibility.
A finance partner ensures you are working with a much lower risk than with a bank loan. With the help of this finance partner, you will benefit from their bad debt protection, meaning you can be protected from suffering any possible unpaid debts from clients. Your financing with your finance partner is also short term and is able to grow as your business grows – the more your invoices are worth, the more money is available to you, whereas bank funding can have a capped limit. Simple and safe, with no debt to speak of!
The relationship which you develop here is detailed in the name – finance partner. A recruitment finance partner can become involved with the financial management of your recruitment agency and not solely lend you the money.
Choosing the right funding option for your business, should not be a stab in the dark, and every business has different needs, so make your choice based on what you require and what feels right. Recruitment agencies have specific requirements which can be more demanding than many businesses and sourcing a finance solution which understands these demands is one asset to consider in your calculations!
To discover more of New Millennia’s finance solutions or to contact them to inquire, visit NewMillennia.co.uk.