The latest thinking, news and events from the world of Recruitment

Recruitment: Traditional Versus Alternative Finance

SHARE
,

This article has been submitted by Simplicity

The post-recession aftermath enforced stricter lending criteria and controls on traditional finance providers which led to the growth of the Alternative Finance Market for businesses –  and it shows no sign of stopping any time soon. Why?

The motivations behind doing so are quite simple: Business owners need to protect their cash flow and have enough funds available to grow. This is especially the case with recruitment businesses. With increased demand for candidates and the number of jobs filled by recruitment agencies expected to grow from 45% in 2016 to 56% in 2018 according to the REC, competition between agencies has never been so intense.

To stay ahead, and consolidate their position as an agency of choice, recruitment business owners need to ensure they have the financial support they need. It’s about peace of mind – knowing that there will always be funds available to cover workers’ wages, overheads, staff salaries and essential outgoings.

We have supported countless number of recruitment businesses over the last 13 or so years. Many of them have previously partnered with banks and other finance providers. Many more have reported their frustration caused by restrictive funding caps and concentration limits among other things that effectively stifle the growth of the agency and can cause all manner of financial headaches for agency owners; imagine winning a contract to supply 10, 50 or more contingency workers only to be told by your finance provider that because of the caps on your account you can’t take on that contract?

No one knows more than you that recruitment is a sector like no other. It has its own unique challenges and nuances. The recruitment business owners that we work with cite this to be one of the biggest reasons for them wanting to partner with a specialist recruitment finance provider like us – someone who ‘gets’ their business.

Choosing which finance provider to partner with is one of the most important decisions any recruitment business owner can make. Get it right, and the pace at which you grow your agency is entirely down to your own ability and ambition. But get it wrong and you could find your rate of growth being dictated by a third party, and that’s probably not what you envisaged when you decided to start up on your own, is it?

SHARE

Posted by:

Simplicity is the ‘go to’ Growth Partner for start-up and existing recruitment businesses. They help recruiters achieve Faster, Smarter Growth by removing barriers and providing them with the critical tools needed to run long term, successful and profitable businesses.

They exist to make the business of recruitment as simple as possible, by providing recruiters with a comprehensive range of market leading, award winning and ISO 9001 certified financial, back office and support services.
As part of their solution we offer ‘GEMS’ the industry’s first FREE end-to-end Recruitment CRM and Workflow Solution. GEMS technology combines your front and back office systems into one seamless process. No longer do you need the hassle and cost of a standalone CRM and other systems to run your business. From CRM to payroll, right through to reporting, GEMS provides the complete technology solution and best of all its completely FREE to Simplicity partners.

Time is a valuable asset to you and your business. Partnering with Simplicity will give you all the time you need to focus on what you do best; win new business, manage existing clients and source the best talent. Simplicity can help you to achieve your growth aspirations and make your recruitment business a success.

Related Articles