This week, during a meeting with a prospective agency, we were asked at which point they should consider moving from Fund My Contractor to the TBOS (Total Back Office Solution) model, which would involve them having their own invoice finance.
We explained that when the agency reached a point at which it had enough future business to secure a projected turnover of a minimum of £750,000 for at least a year it would be worth moving to their own invoice finance arrangement. At this point the charges given by the invoice finance company could be below the 1.5% service charge and they should easily exceed the annual minimum fee charged.
Fund My Contractor did some calculation on the agency’s contractors and agreed that once they reached six or seven contractors TBOS would help to produce some projections and acquire quotations from their preferred invoice finance providers to help make sure they got a good rate on their agreement.
We also explained that the agency could use Fund My Contractor for contractor placements and TBOS for the administration of permanent placements, including accounts, staff payroll, supplier payments, VAT and year end statutory work.
If you would like more information about how Fund My Contractor can assist you please contact our offices on: 0845 8811 112.