Recruitment agencies have a specific issue with cashflow shared by no other industry sector in that they are obliged to bridge a vital cash flow chasm between paying wages on the one hand and (eventually) receiving payment from their client on the other. Because of the structural nature of the industry, recruitment agency factoring is particularly attractive.
The majority of placements with recruitment agencies are temporary placements, as this is the bread and butter of a recruitment consultancy’s work. Short term projects like this present a particular problem in that they are many and varied, and each invoice will have to be accounted for so that wages which become payable upon presentation of a timesheet will then need to be paid to the employee by the agency at the end of that working week.
The fact that a timesheet is always used in support of the invoice is a huge benefit and is attractive to both parties as it effectively underwrites the validity of the invoice itself. It’s always a good thing for invoices to be backed up by other documentation, not least because it is legal proof that the invoice is a valid document in itself. Recruitment agency factoring is ideal because it has a timesheet for each invoice as a matter of course.
See the recruitment agency factoring page for more details.