FAQs about Recruitment Finance

03 Jan 2022

Recruitment Advice

Whether you’re an established SME agency looking for financial support or a recruitment startup with more than a few questions, we’re here to help!

We know recruitment finance can be tricky to get your head around if you’ve never used the service before, however it really couldn’t be more simple.

Below we’ve answered a number of frequently asked questions, however don’t hesitate to get in touch if you need any more information:

What is recruitment finance?

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

How does recruitment finance work?

Recruitment funding essentially 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. This builds 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 to invoice factoring?

Yes, there are a number of 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.

How can I apply for recruitment funding?

To apply for recruitment funding from New Millennia get in touch with our team. Our Operations Director Paul will meet with you to discuss the process and answer any questions you might have.

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