It has now been over a month since the relaunch of the Fund My Contractor model under the new name of “TBOS Freedom” and it has given the product a new lease of life. The enquiry levels are up and the number of agencies using the service to fund and administer their contract positions has dramatically increased.
TBOS Freedom was born out of a number of early enquires to the TBOS office. One type of enquiry was from permanent recruiters looking for funding on one contract placement. In many cases they had no idea how to run the placement or have the funds to pay the contractor. The other type were new start up recruiters who would believe they could replicate their previous position and have 10, 20, 30 contractors within the first 12 months but in reality would only achieve 5-7 contractors in their first year. These types of agencies would then be hit by the monthly minimum fees within the invoice finance arrangement that was set up which would absorb most of their profit margins.
TBOS Freedom was created to facilitate both of these scenarios as well as allowing Directors of agencies with a bad credit history to make contract placements, as the funding is based on the credit worthiness of the client being invoiced.
The 5 reasons why TBOS Freedom is good for new start-up and permanent recruitment agencies is:-
- TBOS Freedom is ready to go within a matter of hours
TBOS Freedom has been running for nearly 4 years now and is being used by a large number of agencies to fund contract placements in the UK and worldwide. The setting up of the facility can be done within a matter of hours, including the credit check and contract raising necessary to get the placement secure
- TBOS Freedom includes all the administration for a contract placement including contracts and invoicing
Making contract placements puts a greater amount of strain on an agency’s administration when compared to making a permanent placement, so TBOS Freedom takes this away from you. The facility includes contract templates complying with AWR and IR35, the client invoicing, candidate payroll (PAYE/Umbrella/Ltd Co.) and once the client pays we also produce a self-bill invoice for the profit.
- TBOS Freedom has no set up or minimum fees
TBOS Freedom knows that agencies do not want to pay out fees at the best of times, especially when a placement may or may not happen. TBOS Freedom does not have any set up fees. There is no charge for credit checks or the raising of the contracts, so even if the placement does not go through then there is nothing lost. TBOS Freedom does not charge monthly minimum fees as the fees are based on the weeks worked by the contractor and our charges are only taken from the profit generated.
- TBOS Freedom has no long term sign up and can be used for as many placements as you require
The flexibility of TBOS Freedom allows you to use the service for as many or as little placements as you need it for. This means that a permanent agency that gets one contract placement in their lifetime can use our service for that contract and then never use us again. Also if an agency has 4 contract placements and believes they can fund and administer one themselves then TBOS Freedom will only fund the 3 other contract placements.
- TBOS Freedom is fully credit insured and can cope with international/currency placements
TBOS Freedom understands that when a contract placement is made there is always a risk that the client will not pay or go bust but the candidate has already been paid, so TBOS Freedom has its own credit insurance policy to ensure that if your client goes bust or can’t pay/won’t pay after 120 days then the funds that have been paid out are covered. TBOS Freedom also has the capability of funding placements in over 170 countries and in 15 different currencies should your placements be outside of the UK.
TBOS Freedom is an ideal product for recruitment agencies to dip their toe onto the contract market and see how invoice financing works. The team at TBOS Freedom will monitor the contractor numbers and turnover of the agency using the product, and if they feel that the agency would be able to cope with their own invoice finance arrangement then this will be suggested. If agreed then TBOS would help set up the invoice finance arrangement and manage it through the TBOS Complete model going forwards.