Fund My Contractor is our solution for established or start up recruitment agencies who require funding for contract recruitment positions, but who don’t want to sign up for their own invoice finance arrangements. However, over the past 12 months we have noticed that Fund My Contractor has become an ideal growth incubator for agencies looking to expand into the contract recruitment market, allowing them to easily transition into their own invoice finance facility once they hit the required levels of placements and minimum fees/turnover.
Over the past 12 months we have had 2 success stories of agencies (Dawsonhill Ltd and Ventula Consulting Ltd) who initially engaged our services on Fund My Contractor but got to 7-8 contractors working on a regular basis. This prompted us to help them to arrange their own invoice finance agreement and transfer the contractors to their own facility under the management of TBOS.
Both companies have continued to grow their contractor bases; Ventula now has over 30 candidates on-site. If they had started off with their own invoice finance arrangement, without the help of Fund My Contractor, they may have incurred extra costs such as set up fees and minimum factoring charges.
All of the contracts that were in place under Fund My Contractor were easily migrated over as the agency was already a party on the contract. All Fund My Contractor had to do was resign on the contracts and all responsibility was moved to the agency, meaning the transfer for the clients and candidates was seamless.
We currently have another agency whose numbers appear to be growing to the point where they may require their own facility within the next 3-6 months. The flexibility of Fund My Contractor has ensured that this can be done when the time is right instead of being pressured to sign up for a 12 month invoice finance facility immediately.
Another example of how Fund My Contractor has helped our agencies is when concentration issues have incurred. PDM Recruitment Consultancy Ltd have been using Fund My Contractor for over 18 months now but during most of that time have had a number of international contractors at one main client. If PDM were to go to the market to get an invoice finance arrangement then they would potentially be penalised for having a high concentration of business with one main client plus having 100% concentration of export/international business. This means that they would be over charged on the service charges or have a reduced funding pre-payment percentage if they could get an arrangement in the first place. PDM are continuing to grow on their contractor numbers and working with more clients internationally but are currently only able to be funded using Fund My Contractor due to the 100% concentration of export business.
Fund My Contractor continues to provide fully credit insured funding to many different recruitment agencies for numerous contractors on site in various industries worldwide on a daily basis and is happy to give help and advice to any agency having issues with funding their contract placements.
For more information on the services provided by Fund My Contractor please telephone 0845 881 1112 or email [email protected] or alternatively check out our website www.fundmycontractor.co.uk for information and our online profit calculator to see how we can help you.