We’ve talked about this recently, but to handle contract placements your agency needs fluid financing. Not many recruiters will be able to cover paying contractors out of pocket while waiting for their clients to settle each invoice – there are better uses for that money.
But what other options to you have?
- Invoice Finance through Banks
When you talk to your bank to begin using this service, you can expect the contract they set up to last 12-24 months automatically with minimum monthly fees and a significant set-up cost at the beginning.
Obviously this isn’t an ideal solution!
- Invoice Finance through Third Parties
Most third party providers also require a long term sign-up period and charge based on a percentage of turnover.
In each case, you have close to the same problem; you’re committed for the long haul, and there’s a steady cost associated. Even if you decide to get out of the contract placement game or it doesn’t take off as you hoped, having taken the chance can hurt your bottom line for up to two years.
Needless to say, a lot of recruiters have chosen not to play rather than risk that kind of cost.
And that’s why TBOS Freedom was introduced.
So what do you get from TBOS Freedom?
- No Upfront Costs
We don’t charge you to set up a TBOS Freedom arrangement; we just start work. All fees are taken from profits after pay is received from the client.
- Flexible Arrangements
You’re not locked in to the long haul; you’re free to arrange as many or as few contract placements as your desk handles. We’ll adjust to suit your capacity.
- International Placements & Currency
Even if you work across country borders and some of your invoice financing has to be in other currencies, TBOS Freedom can handle that, although it will take a little more time to set up.
- Immediate Set Up
For UK contracts, at least, we can have your service up and running in under three hours from you discussing what you need with us. As the first placement is made you can make the arrangements you need and know that you don’t need to worry about it anymore.
- Peace of Mind
We credit check clients and ensure debts are insured, minimising risk to your agency and to ourselves, and our contract templates include checks that all parties are protected and that IR35 and AWR regulations being followed.
Because you’re working with us, we’ll also handle all the back office processing of timesheet management, invoicing, contractor payments and credit control according to terms set with you. After we receive the client’s payment, the contractor receives their payment, we deduct our fees, and the profit is passed to you.
TBOS Freedom is a new model to the industry and it provides flexibility and peace of mind not found anywhere else. If you want to know more about this comprehensive solution, why not contact us via our site, by calling 0845 881 1112, or emailing us at [email protected]?