Invoice finance is a necessity for recruitment agencies who are looking to make a number of contractor placements as the candidates will often require payment before the client has made payment of invoices.
Invoice finance companies provide finance against invoices raised by the agency to enable recruitment agencies to pay the contractors until the client makes payment. This service often requires a long term agreement sign up and certain minimum and fees and guarantees to be met.
With the TBOS Complete model, we do not provide our agencies with any finance but we do help to manage the cash-flow of the business and if required set up invoice finance agreements for the agency. Whether the agency is a new start up or an existing agency with a current invoice finance arrangement, TBOS can help manage the invoice finance arrangements to ensure they match the agency’s requirement.
TBOS has relationships with many different invoice finance providers to get the agency the best possible quotation and service required for their needs.
TBOS firstly discusses with the agency their funding needs and requirements such as credit insurance, countries and currencies, concentration of debtors, permanent invoice finance to produce a business plan and projection forecast to provide to the invoice finance providers.
Once the invoice finance providers have provided quotes they are presented to the agency and discussed on which facility would be best for their needs. Once decided TBOS liaises with the agency and the invoice finance provider to collate all the required documentation to get the facility approved by credit.
TBOS will also ensure that the facility in place matches the agency’s requirements and if necessary help with negotiations to reduce the service charges or increase funding limits as required.