Credit control is a vital part of our service. Alongside recruitment funding, invoicing, and payroll, it helps to keep things running smoothly so you can focus on growing your business.
So why do some back office support providers not offer credit control? Today we’re going to outline why credit control is so important, and why we’re the team to call if your agency needs a boost in efficiency.
The Importance of Cash Flow for Temporary Recruitment Agencies
Every business needs a steady stream of cash flow. Money comes in, and it’s used to pay salaries, cover overheads, and hopefully there’s a little extra that you can invest into growth.
This is especially important for temporary recruitment agencies. They need to pay their temporary workers on time each week, after they’ve been working hard helping your clients. The money for this comes from said clients – they pay regular invoices that cover the costs.
However, this is a problem. Workers need to be paid weekly, but invoices are paid monthly at best, with 45 and 60-day terms not unheard of. This is why temporary recruitment companies often struggle with cash flow issues.
A single delayed invoice can through the whole operation in jeopardy. Temporary workers are the backbone of any agency, if they aren’t happy your reputation will soon be in tatters.
Our service prevents this.
The Solutions to Cash Flow Issues in Temporary Recruitment
As cash flow is the most important factor in your agency, we’ve made sure that our service supports it directly.
First is our 100% recruitment funding. In simple terms, this means that you have access to funds even when invoices are delayed or not due yet. It bridges the gap between payments, keeping your workers happy and stress levels to a minimum.
The ‘100%’ means that you get 100% of the money you need, and we don’t shave any fees off the top. You’ll pay one single price for our entire service, with nothing hidden, from day one.
This is great, but on its own recruitment funding doesn’t completely solve cash flow issues. To keep the cash flow consistent, you also need credit control.
How Credit Control Works
Paying temporary workers isn’t quite the same as paying permanent staff salaries. The workers need to submit timesheets, which need to be approved as quickly as possible.
Then invoices are sent out. Again this needs to be a rapid process, but too much focus on speed can cause issues. If an invoice contains an error, even a minor one, it could prevent it from being paid on time. That’s why we check, check, and check again to make sure your invoices are spot on before they’re sent off.
Your credit controller will also have completed credit checks on your clients, and will set credit limits that are then closely monitored. If the limit is reached, you’ll be informed immediately so it can be adjusted or payments will be paused. We also offer debt protection as part of our service, which ensures that clients’ financial issues don’t affect your agency.
Credit Control with a Human Touch
With AI and automation both having major impacts on temporary recruitment, it’s vital that you continue to maintain good communication between yourself, your workers, and your clients.
At Back Office Support Services, we understand this, and will help you to build a better relationship between your agency and the clients who rely on your services.
When you work with us, you’ll be assigned a credit controller who will be dedicated to your agency. They’ll become an extension of your team, learning how you like to do things and staying in regular contact. This approach is also used for your clients; they’ll talk with them often, building a personal yet professional relationship that reduces delays. If your clients just see you as a series of invoices, there will be no loyalty, but if they see it as a partnership, they’ll be happy to stick around long term.
You’ll also be kept in the loop with regular updates, and your credit controller is only a phone call or email away if you have any questions.
Getting the Support you Need
Agency owners have two options when it comes to admin tasks like credit control. You can either handle it all in-house, which takes a lot of time and effort, or you can outsource it to a third party.
The latter is a better financial decision, if you invest your budget wisely. A lot of agencies work with multiple third parties; some offer recruitment funding, others help with credit control or payroll support. Splitting it up makes it far more expensive, and you’ll struggle to keep up with all the reports.
Instead, just choose a support company who does it all. Our service includes:
Everything you need from one provider, and for one cost. Do what’s best for your agency and hand the admin to the professionals, you’ll soon see why we’ve been one of the UK’s most trusted back office support companies for nearly 30 years.
If you have any questions about us or our service, please don’t hesitate to get in touch. We look forward to hearing from you.