Apply For Recruitment Factoring Today
100% Payroll Funding Funding For Temps & Contractors Perm Placement Funding Full Back Office Support Bad Debt Protection Weekly Margin Advance
Apply in minutes, there’s no effect on your credit score and you can get a decision within 24 hours.
“I highly recommend any business looking to improve cash flow to speak to Terry and the team he has at Adept.”
“I highly recommend any business looking to improve cash flow to speak to Terry and the team he has at Adept.”
Ideal for start up agencies
6 months+ trading
Finance your temp and perm invoices
All credit profiles considered
We Make Recruitment Factoring Easy
Our experts take all the stress and confusion out of applying for finance
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To get things started, share some basic information about your company and how much you’re looking to borrow with us. Applying does not affect your credit score.
Review your offers
Our LoanTech decision engine will save you hours by telling you in minutes how much you can borrow and which lenders you can apply to.
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We discuss the available options with you and manage the application process through to completion. Funds can be available in as little as 24 hours.
What is Recruitment Factoring?
Are you fed up of waiting for your customers to pay?
Are lengthy payment terms and late customer payments putting pressure on you and your business, making it hard to keep up with expenses?
Recruitment factoring, also known as staffing factoring or payroll factoring, is a financial solution tailored specifically for businesses in the recruitment or staffing industry.
This form of factoring helps these companies manage the common challenge of cash flow, particularly due to the gap between paying employees or temporary staff and receiving payments from clients.
Instead of waiting weeks for invoices to get paid, you can release up to 100% of the cash you are owed almost immediately.
How does recruitment finance work?
Recruitment finance, combined with back-office payroll support, offers a comprehensive solution for temporary or contract staffing agencies.
This service not only provides immediate funding based on invoice value, alleviating the cash flow challenges caused by delayed client payments, but also handles the administrative burden of payroll processing.
Agencies receive a significant portion of their invoice value upfront, ensuring they have the necessary capital to pay their staff on time. The back-office support streamlines payroll, tax, and compliance tasks, allowing agencies to focus more on their core business activities.
What are the Benefits of Recruitment Factoring?
Pay contractors on time, outsource admin and manage risk
Fast Funding
No more waiting for customers to pay. You can access funding within 24 hours of issuing an invoice.
Improved Cash Flow
Keep on top of staff wages, supplier bills and HMRC with immediate access to cash.
Uncapped Growth
Flexible funding with no fixed upper limit, so you can scale your business quickly.
Protection
Customer credit checking and optional bad debt protection reduces the risk of bad debts.
Saves Time
Spend more time growing your business, less time chasing payments (if credit control included).
Easy Access
No credit scoring or lengthy application process, get funding even if you have bad credit.
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Funding and Back-Office Support for Start-up Recruitment Agencies
Recruitment finance is the perfect solution for start-up recruitment agencies. By combining payroll funding with full back-office support, you can focus on growing your business.
100% payroll funding
Weekly margin payments
Simple, flat fee
VAT funding
Bad debt protection
Management reporting
Credit control
Payroll
'Pay as you go' facility
What Our Clients Say
Frequently Asked Questions
What is Recruitment Factoring?
Recruitment factoring is a financial arrangement where recruitment agencies sell their outstanding invoices to a factoring company for immediate cash. This provides the agency with quick access to funds that would otherwise be tied up in unpaid invoices.
How does Recruitment Factoring work?
An agency invoices their client for services rendered. Instead of waiting for the client to pay, the agency sells the invoice to a factoring company at a discount. The factoring company then advances a portion of the invoice value, typically 70-90%, to the agency upfront.
What are the benefits of Recruitment Factoring?
The key benefits include improved cash flow, the ability to pay temp staff on time, reduced need for debt collection, and more time and resources to focus on core business activities.
Is Recruitment Factoring expensive?
Costs can vary, but factoring is generally considered a cost-effective solution for managing cash flow, especially when compared to the costs associated with late payments or the opportunity cost of not being able to take on new business.
Is Recruitment Factoring regulated in the UK?
Factoring is not currently regulated by the Financial Conduct Authority (FCA). An industry-wide code of conduct is provided by UK Finance to ensure a fair service and integrity is provided for invoice factoring services.
How quickly can I get funded through Recruitment Factoring?
Funds are typically available within 24 to 48 hours after the invoice is sold to the factoring company.
Will my clients know if I'm using Recruitment Factoring?
This depends on whether you choose a disclosed or confidential factoring service. In disclosed factoring, your clients are aware of the factoring arrangement. In confidential factoring, the process is invisible to your clients.
How do I qualify for Recruitment Factoring?
Qualification generally depends on the creditworthiness of your clients, not your agency. As long as you have creditworthy clients and valid invoices, you are likely to qualify.
What happens if a client doesn't pay an invoice?
In non-recourse factoring, the factoring company absorbs the loss of unpaid invoices. In recourse factoring, the agency is responsible for the payment if the client defaults.
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Prefer to talk? Call us on 0208 137 0105