Why Should a Recruiter Bother with Invoice Finance?
Our policy has always been to ensure that recruiters can get on with the business at hand, helping contractors and employees alike, while we take care of the rest of the business. That’s why we call ourselves Total Back Office Solutions.
But imagine how those customers who depend on TBOS Freedom would cope if they’d signed up with Partial Back Office Solutions instead…
Partial Back Office Solutions Wouldn’t Offer Invoice Finance
- Recruiter Cashflow Turns into Chaos
Without invoice finance, you have two options; keep enough money liquid whenever contractor payments are due to cover their pay before your client companies pay you, or pay your contractors late (very late if your clients pay slowly) and hope that doesn’t lead to trouble – but it always will. Dealing with this will overstretch both the recruiter and their friends at PBOS, making for more slowdown, more hassle, and ultimately more and more time spent trying to balance cashflow.
- Pay-And-Bill Solutions That Aren’t Solutions
Pay-And-Bill is a system some agencies have adopted where payment goes out once the timesheet arrives and a bill is automatically generated for the client. Pay-And-Bill functions through an online portal accessed by both sides. However, it doesn’t actually improve the speed the client processes the invoice and pays with, leading to the same problems for the client – Pay-And-Bill would just be an easy way for PBOS to wash their hands of the problem.
- Transition from Pay-And-Bill to Invoice Finance is Tough
Pay-and-Bill providers’ fees can take a toll on profits, but because the payment cycle functions differently from the invoice finance payment cycle, moving from Pay-And-Bill to a better system can lead to an unusually long period without any money going to the agency rather than the contractors, making it challenging to change if you decide you were mistaken.
TBOS Knows Better
- Tracking Outstanding Payments
Even with a good invoice finance system in place, there’s still a responsibility to chase up on outstanding payments from client companies. We went into the risks to watch out for in depth a while ago and we’ve had no reason to change our opinions since. TBOS will keep track of your situation so you waste as little of your valuable time as possible chasing outstanding payments. It’s much more important that you have a chance to get on with your job.
- Keeping it All Together
As the name suggests, we’re a total solution. We don’t handle part of the problem and then step back; through TBOS Freedom you can keep everything you need to know about your financing situation in one place. A unified and monitored system like this means that nothing can accidentally fall through the cracks.
Partial Systems Just Become Part of the Problem
We promote a total system and total awareness with our clients. It’s important not to let anything slip through the cracks, and your back office should be a vital part of that.