Recruitment Finance FAQs: Everything You Need to Know

Recruitment finance can be a lifesaver for recruitment agencies, especially for those who are just starting out. It can help you manage your cash flow more effectively, ensuring that your candidates get paid on time, and it frees up your time to focus on growing your business. However, if you’re new to recruitment finance, you may have a few questions. In this article, we’ll answer some of the most frequently asked questions about recruitment finance.

What is recruitment finance?

Recruitment finance is a solution for both established SME and startup recruitment agencies. It allows you to free up cash flow within your business, bridging the gap between successful placement and payment from your client. Essentially, it allows you and your temporary employees to get paid while you’re waiting for your client to pay.

How does recruitment finance work?

Recruitment funding pays you and your temporary employees before you receive payment from your client. It can be the ideal solution for recruitment startups who haven’t got a large amount of equity to pay their temps in advance of money received. New Millennia handles the payroll function, meaning everyone gets paid on time, and you’re able to focus on maintaining your client relationships and winning new business!

What do I need to access recruitment funding?

Once you start working with New Millennia, you need three things to access recruitment funding. Firstly, your client needs to pass a credit check. Secondly, you need to complete all the necessary contractual paperwork that New Millennia will provide for you. Finally, you need to get a signed timesheet, which is confirmation from your client that the work has been completed. Once we have these three things, we’re then able to release your funding.

Who can access recruitment finance?

We typically work with small temp agencies who want to manage their cash flow more effectively and startup recruitment agencies. The startup recruitment agencies we work with are typically established by experienced recruiters who are going it alone after working for a larger recruitment group. However, we do also work with individuals who are starting an agency without recruitment experience. If you want to know if you’re eligible, then get in touch, and we’ll be more than happy to discuss everything with you.

Is recruitment funding only for temp agencies?

Recruitment funding from New Millennia has been designed to work for agencies supplying temporary staff, as it allows those staff to be paid before payment is received from the client. However, we do also offer support options for permanent placements, so do get in touch if you’re interested in finding out more.

What are the benefits of recruitment finance?

There are many different benefits to accessing recruitment funding. For example, it improves cash flow within your business, ensuring that each of your candidates gets paid on time. These build trust between you and your placements and allows you to hold on to the best talent. It also frees up your time, which is vital for real business growth. By handing over the back-office functions to New Millennia, you’re able to focus on doing what you do best.

Is recruitment funding different from invoice factoring?

Yes, there are several key differences between recruitment funding from New Millennia and invoice factoring. Unlike with factoring solutions, no personal guarantees are required, as in the unlikely event of non-payment, we’ll reclaim costs directly from the client. With recruitment funding from New Millennia, there are no minimum fees, you just pay as and when you need the service. We also offer 100% invoice funding, regardless of the volume of business you currently have on your books.