Invoice finance for your recruitment business in four simple steps
With news that more than half of UK firms intend to hire new staff in the next three months and Boris giving us an exit route from lockdown, it’s going to be a busy time for those in the recruitment industry.
For temporary or contract recruiters in particular, this might present a cashflow challenge. Whilst contract candidates must be paid on time every week, the clients of recruitment companies will typically pay on 30 to 60 day terms (and sometimes even longer). In these circumstances, an invoice finance facility can help to bridge the cash gap, ensuring all your candidates are paid on time, every time.
With Satago’s selective invoice finance, you have the flexibility to fund only the invoices you choose.
Here’s how it works.
1. Register on the Satago platform and connect your accounts package.
2. Apply for invoice finance and one of the team will be in touch to help get you set up.
3. Once approved, select the invoices you want to fund.
4. As soon as your customer confirms the details of the invoice to Satago (a process known as verification) we’ll send the funds to your bank account.
Typically, Satago will advance up to 85% of the value of the invoice upfront, giving your business the cash injection it needs to meet candidates’ weekly wage payments. When your customer pays, we’ll transfer the remaining balance, minus any interest accrued.
While many invoice finance providers will charge a multitude of different fees for providing their facilities, at Satago we like to keep things simple. You’ll only ever pay for the funding you use during the time you use it, with rates from 1.5 to 3.5% per 30 days (calculated daily). You’ll see the estimated cost of funding each time you apply for finance:
What’s more, the Satago platform provides an automated credit control tool and a risk insights tool to help you avoid late payments on your invoices.
With cashflow taken care of you can focus on attracting new clients and candidates, increasing turnover and profitability.
To find out more about how Satago can help your recruitment business, please book an appointment today.