The benefits of recruitment funding – fast and flexible

Recruitment funding

A type of funding specifically for recruitment agencies that helps to be able to pay temporary or contract workers, while providing support with the back-office administration around this. It is different to traditional invoice finance / factoring and has some specific benefits which are as follows;

Advance rate

In most cases recruitment financiers are able to advance against each invoice at a higher amount which is normally 100%. The financier will pay the contractor in full and then pay the agency all of their margin / profit minus the financier’s fee. With this, the agency get access to all of the margin each week or month and do not have to wait until the client pays.

Flexible

Recruitment funding tends to be more flexible than other invoice finance solutions. There are normally no set-up costs, minimum fees (only pay when you have contractors working), funding limits or concentration limits.

Fast

A recruitment funding facility can normally be setup in a few days, which suits the fast nature of a recruitment business.

Back-office support

Usually recruitment financiers will help with elements of the administration around paying workers. Timesheets, invoicing, payroll, credit control and contract submission. The recruitment directors can then just focus on picking up roles, filling jobs and growing their business, without getting distracted by the non-fee generating activity.

Bad-debt protection

Normally recruitment financiers will include bad-debt protection in the facility, rather than it being an additional cost. This is insurance against the agencies end client. Providing protection if the client were to become insolvent before paying. This is particularly important when running contractors, as there can be large sums of money (in unpaid invoices) outstanding at any point.

Industry knowledge and technology

At QUBA Solutions, we understand recruitment inside and out – because we were founded by recruiters, for recruiters. That means we don’t just provide finance. We offer expert guidance and support tailored to the recruitment industry. Our dedicated technology platform goes beyond a standard finance system, giving agencies the tools they need to grow.

With QUBA, you get access to recruitment-specific features such as e-timesheets, a mobile timesheet app, consultant billing tools, and more, all designed to streamline operations and improve cash flow management.