Why Self-Funding Isn’t Always the Smart Move

At QUBA Solutions, we understand the appeal of self-funding. Some agencies consider it when working with clients on favourable payment terms, or in situations where a client is deemed uninsurable. On the surface, it might seem like a good way to retain more control and margin.

But here’s the truth: funding is only one piece of what QUBA offers – and choosing to self-fund often leads to a lot more stress, complexity, and risk than agencies anticipate.

Let’s break down why self-funding might not be worth it, and what you lose when you go it alone.

1. You’re Taking On All the Admin

When you choose to self-fund, you’re not just taking on the cost of payroll, you’re taking on the full administrative burden:

• Submitting RTI (Real Time Information) reports to HMRC
• Completing Intermediary Reporting
• Managing additional financial reports like gross profit and aged debt, all in sync with QUBA’s existing systems

That’s a lot of reporting and reconciliation that could be eating into your time, time better spent scaling your agency.

2. Timesheets and Payroll – All on You

With QUBA, timesheet capture, approvals, and payroll processing are all part of the service. Self-funding means you’ll need to:

• Chase up and verify timesheets
• Calculate pay, tax, pension, holiday entitlement
• Run payroll accurately and on time
• Select a Pay and Bill solution (this will come at a cost)
• Process and reconcile payments.

Every week becomes a scramble especially if things get missed or delayed.

3. You’re Doing Your Own Invoicing and Credit Control

When you self-fund, you must:

• Raise your own invoices
• Chase payments
• Monitor debtor days
• Stay on top of multiple ledgers

QUBA provides a dedicated credit controller who understands the nuances. Without that support, you’re on your own.

4. No Bad Debt Insurance = More Risk

Even if a client has short payment terms, there are no guarantees. If they pay late or enter insolvency, and you’ve self-funded that placement, you take the full hit.

QUBA provides bad debt protection, shielding you from the unexpected. Why risk a major cash flow crisis for a client who looked good on paper?

5. It’s Messy and Distracting

Running a recruitment agency is already demanding. Adding:

• Payroll
• Invoicing
• HMRC submissions
• Credit chasing
• Legal compliance

…into your core responsibilities? It’s a recipe for distraction, pulling you away from business development, relationship-building, and candidate sourcing.

6. You Might Hurt Your Long-Term Rate

When QUBA reviews your contract book to assess rates, we look at average debtor days (DSO). If you’re self-funding a quick-paying client instead of letting us handle it, that fast payment doesn’t help your overall average.

Letting QUBA fund even those “easy” clients can help improve your average DSO and unlock better rates across your full contract book.

7. You’re Missing Out on Our Risk & Fraud Prevention

We don’t just fund your placements, we protect your business. If a client offers unusually short payment terms (e.g. 7 days), it might be a red flag.

When you work with QUBA, we run thorough checks and raise potential fraud or credit risks before it’s too late. But if you self-fund and don’t loop us in, you miss the opportunity for us to help safeguard your agency.

Final Thoughts: Let Us Handle the Hassle

Choosing to self-fund might seem like a short-term win, but in reality, it’s a time-consuming, risky, and isolating approach.

With QUBA, you’re not just getting funding, you’re getting:

✅ Payroll support
✅ Credit control expertise
✅ Bad debt protection
✅ Legal documents
✅ Full compliance
✅ Transparent reporting
✅ CRM integration
✅ Fraud checks
✅ Access to DynamiQ to manager your contract business
✅ And a partner who’s just a phone call away

Let us take the admin off your plate, reduce your risk, and free you up to focus on what you do best, placing great talent and growing your business.

QUBA Solutions. More than just funding. We’re your back office, your safety net, and your secret weapon