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• 06 Jul

  1 In 3 Staff Agencies Plan To Use Invoice Finance

  Research suggests that as many as 1 in 3 staff agencies plan to use invoice finance in the next year, as the sector anticipates a period of rapid growth.

  Find out about PAYROLL FINANCE For Staff Agencies

  Recruitment Companies Expect To Grow

  

  I posted in the past that 87% of recruitment companies in our survey said that they expected to grow their revenue over the next year. Despite many of those surveyed saying that they had been affected by the pandemic, it is great news to see that so many are now optimistic about growing their turnover.

  That growth is a key part of the UK's economic recovery from the impact of Covid-19, part of the UK Government's growth plan. With rapid growth comes the need for liquidity and good cash flow. This may be why a third of recruiters surveyed told us that they planned to use invoice finance over the next year.

  If you feel that your business isn't yet in a position to grow, take a look at our Business Growth Hub. It gives ideas about how you might increase your revenue and how you can use flexible financing services to support that expansion.

  Using Invoice Finance To Boost Liquidity

  One the the most important benefits of using invoice financing is that it boosts liquidity, the amount of money that a company has available to use. Liquidity is important to recruiters as it enables them to pay their staff on time. Staff payroll can be a major cost for staffing companies.

  Payroll Finance

  Invoice finance, often called Payroll Finance within this sector, releases money from unpaid customer invoices. That means that the agency doesn't have to wait for a customer to pay an invoice before being able to use that cash. This keeps the money flowing so that fast growth doesn't outstrip their cash flow.

  Great News

  It is good to hear that so many recruiters are anticipating growing their turnover this year. This news creates an opportunity for the UK factoring and invoice discounting sector to help enable that growth with improved cash flow.

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  Source: Recruitment Covid Study - May 2021 (30 respondents randomly selected from the recruitment sector).

  By Glenn Blackman