In today's competitive talent market, attracting and retaining top performers is crucial for recruitment agencies. However, traditional payment cycles can put your firm at a disadvantage. Candidates often face waiting periods to receive their placement fees, impacting their cash flow and potentially swaying them towards faster-paying competitors.
This is where Invoice Finance can be a game-changer. By leveraging Invoice Finance, recruitment agencies can offer early payments to successful candidates, even before client invoices are settled. This strategy presents a significant competitive advantage in attracting highly qualified personnel.
Benefits of early payments for candidates:
Improved Cashflow: Early payments alleviate any financial burdens candidates might face while waiting for traditional payments. This can be particularly attractive for independent contractors or those with immediate financial needs.
Increased Financial Security: Knowing they'll receive payment promptly fosters a sense of security and trust with your agency.
Competitive Edge: Candidates appreciate the financial flexibility and peace of mind that early payments offer, making your agency a more attractive employer.
Invoice Finance: The enabler of early payments
Invoice Finance bridges the gap between placing a candidate and receiving client payment. Here's how it works:
Placement and Invoice: Your agency successfully places a candidate and sends an invoice to the client for the placement fee.
Financing the Invoice: You partner with an Invoice Finance company. They advance a significant portion (up to 100%) of the invoice value upfront.
Early Payment to Candidate: You use the advanced funds to make an early payment to the candidate.
Client Payment: Once your client settles the invoice with the Invoice Financier, you receive the remaining balance, minus a financing fee.
Competitive advantage beyond cashflow
Early payments through Invoice finance offer additional benefits:
Enhanced Employer Brand: Your agency gains a reputation for being financially responsible and candidate-centric.
Faster Candidate Onboarding: Streamlined payments eliminate delays in candidate onboarding, allowing them to start contributing sooner.
Increased Candidate Satisfaction: Early payments foster a positive candidate experience, potentially leading to repeat business and referrals.
Implementing early payments with Invoice Finance
To integrate early payments into your recruitment strategy:
Evaluate Invoice Financing Options: Research Invoice Finance companies to find one with competitive rates and terms.
Assess Cash Flow Needs: Determine the percentage of candidate fees you'd like to pay upfront to manage your cashflow effectively.
Communicate the Advantage: Clearly communicate the early payment option to candidates during the recruitment process.
In a competitive talent market, offering early payments can make a world of difference. By leveraging Invoice Finance, your recruitment agency can unlock this strategic advantage, attracting top talent, improving candidate satisfaction, and ultimately driving your business forward.
Get in touch with one of our team to find out more:
Matthew Shepherd – Chief Operating Officer – mshepherd@skiptonbf.co.uk
Ian Keevil-Smith – Sales Director (South) – ikeevil-smith@skiptonbf.co.uk
Phil McLeod – Regional Sales Director – pmcleod@skiptonbf.co.uk