The Hidden Costs of Recruitment Finance – Are you paying too much for too little?  

Any business owner knows that no matter how successful you are, it’s important to keep track of costs. With so many ways to invest in your business, these costs can spiral out of hand quickly. And even if these costs are small, you might not be getting your money’s worth.  

Recruitment finance can contain hidden costs that you should be aware of. Today we’re going to explain what these costs can be, and why our one-price-for-everything model is so desirable.  

 

The Importance of Recruitment Finance 

When you run a temporary recruitment agency, your main priority is to make sure your temporary workers are paid on time, every time.  

Recruitment funding ensures that you always have the money needed to pay your workers, without having to cut costs to make ends meet. If invoices aren’t paid on time, or payments are needed before the invoice is sent off, you’re still able to access the funds you need.  

Making sure invoices are being paid is another recruitment finance service. We guarantee accuracy with our invoicing services, so that there is no reason why they shouldn’t be paid on time.  

Arguably the most important part of recruitment finance is credit control. Paired with debt protection, this helps your customers to avoid debt and ensure any they build up never affects you. 

 

How much does Recruitment Finance Cost? 

This is one of the questions we’re asked the most, and understandably so! You need to know if you have the budget for recruitment finance, and we’d also like to know this from the start too!  

Unfortunately, there’s no quick answer. Our fee is fixed for our clients, with no hidden costs.  

However, it’s very rare that we are approached by a temporary recruitment agency who can’t justify the cost of recruitment finance. We specialise in helping recruitment companies who are just starting out or have recently changed tack to focus on providing workers for a new industry. If you have recruitment finance services from day one, you’ll be hitting the ground running, without breaking the bank.  

 

Recruitment Finance from Multiple Providers 

There are a lot of recruitment finance providers out there, but very few have everything a growing company needs.  

Recruitment finance can be split into 4 main solutions:  

All of these are extremely beneficial for a temporary recruitment agency, so picking and choosing between them only restricts growth.  

But when recruitment finance companies are offering some or only one of these, you’re not only paying them for half the services you need, but you’re also forced to spend more money elsewhere.  

If these companies all have their own fees, it quickly becomes a lot more expensive than it should. That’s before you have to worry about tracking the costs and trying to monitor the results that they promised before you signed on the dotted line.  

These fees can include minimum fees, set-up fees, and sometimes renewal fees – this is a lot that won’t be outlined clearly from day one.  

 

Recruitment Finance Packages 

Once you’ve chosen a provider, and are ready to invest in their service, there may be another hoop to jump through.  

Many recruitment finance suppliers have multiple package deals for their services. This can affect how well you’re looked after and prioritises the clients with the deepest pockets.  

Any company that deliberately gives you a worse service on purpose is one to be avoided. However, since this model is so common, many business owners fall into the trap of thinking that this is how it always works.  

At Back Office, we keep things much simpler. You get everything, from one provider, for one price. No hidden fees, no feeling like you’re low priority.  

If that sounds too good to be true, wait until you learn how good we are at the job itself! 

 

The Best Recruitment Finance Provider 

Unlike some of our peers, we genuinely care about helping our clients succeed. To do this, we make sure that we dedicate ourselves 100%. 

The teams at other providers are stretched too thin and have to handle the accounts of multiple clients. This means that less time is spent helping each, and the risk of error increases exponentially.  

To prevent this, each of our clients is matched with two members of our team. Your payroll manager and your credit controller handle all aspects of your recruitment finance, including ensuring invoices are sent off on time, and keeping you and your customers in the loop with regular updates.  

They ensure everything sent off is correct, by checking again and again until they’re sure it’s perfect. We understand how a small error on an invoice can cause a major delay, and so never release anything until we’re sure it’s spot on.  

When a new client switches to us, we take the time to learn about them and their business. Every recruitment company has a unique brand and a distinct voice – both of which needs to be replicated by a third-party provider like us.  

Some recruitment companies don’t like to surrender their invoicing to a new company, even when they’re proven to do it properly. To keep the transition smooth we use the same style of emails and keep your company brand attached wherever it should be. Some of your clients may like a certain manner of communication too; we’ll learn what that is from day one so it’s like nothing has changed.