Tuesday, April 1, 2008

Financial Solutions for Recruitment Agencies

The growth in demand for skilled, semi-skilled, and daily wage labor is at unprecedented levels as world economies expand. To keep pace with this demand, recruitment agencies try different models of business to survive in extremely competitive environments. They have to constantly evolve, and this creates the need of additional recruitment finance. Moreover, recruitment agencies face some unique problems.The Unique Difficulties Faced By Recruitment AgenciesDealing with legislative issues leave little time to concentrate on growing the business. Andrew Dixon, product development director of Bibby Financial Services, says: "Although the industry is emerging from the slump of previous years with an accelerated demand for temporary placements and a 7% increase in turnover, the sector remains weighed down by a number of issues. The continuing skills shortage as well as the growing legislative burdens still takes up vast amounts of agency owners and managers' time."Invoicing and collections are time-consuming tasks. Creating, executing, and maintaining a payroll for all the placements as well as its own employees, along with submission of end of the year payroll returns like P35 and P60 forms require qualified management staff. This reduces the cash flow in terms of high salary payments.As the recruitment agency grows, the need for enhanced cash flow also grows.Finance companies offer solutions to these unique problemsSome finance companies provide finance for recruitment agencies. They offer a comprehensive package of integrated funding, invoicing, collections and payroll solution. This provides a one-stop-shop solution.Against all outstanding invoices, an immediate availability of cash, typically up to 85% of the invoiced amount is provided. The remaining 15% minus a small service charge is provided when the invoice is paid. As the sales increase, the funding also increases. This ensures the growth of your agency.The finance company has qualified and well-trained professionals to look after all the administrative and legal aspects of your agency. This reduces the need for professional on-site staff in your agency thereby increasing your savings.A complete payroll solution for all the placements is provided ensuring that wages are paid on time. You choose your preferred method of payment. The end of year payroll returns such as P35 and P60 forms are completed and submitted on your behalf, well within the stipulated deadlines, to eliminate any penalty for late submission. This frees up your management time that can be utilized elsewhere in key areas of growth like procuring new orders.Some finance companies also provide bad debt protection services thus you are assured of payment for the services that you provide.Your requirements are unique to your agency setup, and finance companies tailor the services accordingly.The cost of the financial companys solutions is minimal when compared to the benefits offered, by freeing up management time, giving access to a pool of talented and qualified professionals, and providing a steady stream of recruitment finance against invoices, with or without bad debt protection.

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