Invoice discounting vs. factoring: All the information you need
Does your business continually experience cash flow problems due to lengthy invoice terms and delayed customer payments? If so, invoice...
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Recruitment invoice finance |
Product Features
Long payment cycles, invoice delays and contractor payments make managing inflows and outflows a constant struggle in the staffing and recruitment sector, which is where Penny can help.
Our recruitment factoring solution provides on-demand access to money owed to your agency, paid within 24 working hours of request.
Free factoring facility for recruitment firms
No account setup costs or ongoing commitments. When you need us, we'll be here.
Professional invoice collection support
Save time and money on credit control and collections. Invoice payments managed by Penny on your agency's behalf.
Fast decisions and next-day payments
Submitted recruitment invoices verified in three hours and paid out via Open Banking within 24hrs.
RECRUITMENT FINANCE UK
Penny's approach to recruitment invoice factoring
The recruitment sector contributes a huge £43 billion to the UK economy. However, with weekly payables and 30 to 60-day average invoice terms, maintaining healthy cash flow is one of this industry's biggest challenges.
And with 79.5% of recruitment enterprises operating as micro-businesses, the majority of the UK's invoice finance services remain largely inaccessible.
Penny's model of selective invoice finance has been specifically developed to serve the underserved micro and small biz community.
Our approach is simple. We don't ask for ongoing commitments, and recruitment businesses don't need to finance their full sales ledger to open an account.
After registering a free profile, our recruitment factoring solution gets the total value of submitted invoices paid out within 24 working hours of request.
Business entities
Limited companies and sole traders in the staffing and recruitment sector
HMRC registered
& based in England or Wales
Outstanding invoices
Transactions from £500 - £200k for completed work, terms up to 90 days
What is recruitment invoice finance?
Recruitment invoice finance is a type of commercial funding designed to help staffing and recruitment companies improve their cash flow.
Unlike traditional finance, recruitment factoring offers an unsecured solution that leverages outstanding invoices for fast access to working capital.
Since factoring advances money already owed to a business for completed work, no additional debt gets added to the balance sheet. As a result, this accessible alternative to recruitment loans and overdraft facilities provides small agencies with significantly less risk.
How does invoice finance for recruitment companies work?
At Penny, we offer a flexible recruitment factoring facility that provides instant access to cash withheld in unpaid invoices.
Your recruitment agency can fund its outstanding invoices on-demand with a free Penny account.
There are no setup costs, interest fees or monthly subscription payments. Just one small processing fee each time you raise an invoice for next-day payment.
01
Submit invoice
Upload an invoice for recruitment factoring through your account portal
02
Track status
Penny contacts your client to validate the submitted invoice details
03
Withdrawal confirmed
Invoice is verified and a no-obligation quote with processing fee is offered
04
Get paid
Accept the fee and receive the total invoice value* within 24 working hours
*Total invoice value minus Penny's processing fee. Average fee on a 30-day invoice is 5.1% +VAT.
Discover the benefits of recruitment finance with Penny
Meet payroll obligations
Bridge the gap between paying temporary / contract workers and receiving client invoice payments.
Outsource collections
Spend more time focusing on your core recruitment activities and building your business.
Scale with factoring
As your agency grows, the amount of funding available through Penny's recruitment finance grows with it.
Strengthen cash reserves
Bolster your recruitment business's savings cushion without taking on costly debt.
Work around payment cycles
Instead of waiting weeks or months to get paid, utilise Penny to receive money owed the next working day.
Acquire new clients
Provide services to more businesses without being held back by insufficient working capital.
KNOWLEDGE HUB
Find out if Penny's recruitment factoring is right for your business:
FAQs
Explore frequently asked questions about recruitment invoice finance:
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