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• 16 Feb

  Recourse Factoring For A Healthcare Recruiter

  

  Healthcare recruitment companies are frequent users of factoring arrangements. This case study is about a healthcare recruiter who FundInvoice were able to find a recourse factoring arrangement with a recruitment factoring company.

  Healthcare Staff Recruiters And Cash Flow

  Staffing agencies are one of the most prolific users of factoring services. This is driven by their need to pay their temporary staff before they get paid by their customers. Typically, a temporary member of staff will complete work for a customer and a timesheet will be signed off. This evidences the underlying debt which is ideal for factoring companies who rely on the strength of the debt to provide funding. However, credit terms will normally be demanded by the customer, delaying receipt of the cash required to pay the staff provided.

  Healthcare is a growing sector within the UK, so supplying temps to all parts of the sector has grown in demand. FundInvoice has been able to help a number of these staff agencies find the funding that they need to meet their cash flow needs.

  Recourse Factoring And Its Cash Flow Benefits

  With recourse factoring, the cash tied up in your outstanding debtor invoices gets partially released. A funder may be able to provide 85-95% of the value upfront with the balance (minus fees) passed to you when the debtor pays. This means that you are not waiting around for cash to come in from debtors - the credit gap is bridged.

  To a factoring user, it is as if their customers are all paying on cash terms. This can release a lot of money if customers typically pay after say 30 days.

  Arranging Recourse Factoring For Recruiters

  FundInvoice was able to introduce this particular recruiter to a factoring company that could support their cash flow needs via a recourse factoring facility. The factoring facility will help them pay their staff on time and keep their business cash flowing.

  By Glenn Blackman