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• 18 May

  Half Of Recruiters Cannot Name One Invoice Finance Company

  

  Recruitment is an important sector for invoice finance companies. It is perhaps the sector that is most easily financed, resulting in high prepayment percentages. For this reason, the uptake of receivables financing facilities can be 20 times higher than the UK average, amongst recruitment companies.

  Half Of Recruiters Cannot Name One Invoice Finance Company

  However, in our recent research study, we found that half of the recruiters were unable to name a single invoice finance company that supported the sector. A staggering result, shows that we still have a long way to go to raise awareness of these services.

  There are over a hundred receivables financiers in the UK, it is incredible to think that half of the recruitment companies were unable to name one. This is even more shocking when you consider that most of the major high-street banks offer some type of invoice financing.

  Who Have They Heard Of?

  So, who have they heard of? We asked them to name any invoice financiers that they could think of. Most that answered only named one company. in 4 cases they named 2 and in only one case 3 funders. Bear in mind that some of those that could name funders provided more than one answer. These are the companies that were mentioned, at least once. They are in order of the frequency with which they were mentioned:

  1. RBS
  2. Lloyds
  3. Bibby
  4. Barclays
  5. Hitachi
  6. Metrobank
  7. Advantedge
  8. Skipton
  9. Paragon

  There are so many funders, specialising in the recruitment sector, that are not on the list. OK, it wasn't the biggest sample that we spoke to. However, many funders would hope that they would be known to all companies that operate within the staffing sector. It shows just how much work is required to create awareness.

  The Role Of Brokers

  These results make clear the role of brokers in supporting the recruitment sector. If awareness is so low, and many companies are virtually unknown, the market knowledge of a good broker will be invaluable to recruiters. The fact that at best, a recruiter only knows 3% of the funders that serve the sector, could be a significant disadvantage. The chances of finding the best deals with such a narrow window into the market would be small.

  When a broker searches the market to compare quotes for clients, they are accessing numerous providers' costings. If a broker were to deal with just 3% of the market, the financial implications for their clients could be huge. When you consider that we have found as much as a 2.7 times multiple between the cheapest and most expensive quotes, anyone may fail to find the low-cost deals with such limited market access.

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  Source: Recruitment Covid Study - May 2021 (30 respondents randomly selected from the recruitment sector).

  By Glenn Blackman