Funding a Fast Growth International Recruitment Agency With Invoice Discounting
Peter Rufus asked:
Whilst their market place included the UK, their specialist knowledge was in the growth areas of The Middle East and Africa as well as countries in Europe. Their existing invoice discounting supplier was not comfortable with the level of growth they were achieving in these markets, forcing them to look for an alternative invoice discounting provider. As with most recruitment companies it is vital, when achieving growth to have access to reliable and confidential finance facilities to permit uninterrupted service to their blue chip client base.
Growing the Business Quickly
The previous experience in this market meant that the directors and their sales ledger staff were highly skilled at obtaining payment from operating companies in countries in Africa and the Middle East. They were very confident in their ability to meet the requirements of an Invoice Discounting provider. However, with payment terms ranging between 45 and 60 days and contract consultants requiring immediate payment the instant availability of funding that was very important to ensure the future growth of this new Company.
In the early days, if they were to succeed, it meant that at least 90% of invoices needed to be paid within 48 hours.
Niche Market
The involvement (and heavy involvement) in countries such as Nigeria and Saudi Arabia meant that many of the invoice discounting providers were not prepared to provide any form of finance facility. So a small number of more specialist invoice discounting companies were approached with a full business plan illustrating the way in which the company would expand and the involvement they anticipated in each country. Two invoice discounting providers liked the approach and the potential of this company and following negotiations, terms were agreed with one of them to provide confidential invoice discounting.
The invoice discounting contract was agreed when the directors had met with the senior staff of the provider and ensured that they could work effectively with the administration staff. It is important to understand that this type of development is a long-term commitment and a relationship of understanding and service has to develop quickly between the recruitment company and invoice finance provider to ensure that growth is not held back.
Future Expansion
It is significant that, although the business plan was ambitious, this company was running six months ahead of its target within five months of implementation of the new invoice discounting facility.
To find out more about invoice discounting for your business, contact Martingales for a free assessment. Martingales specialise in taking the strain out of corporate cash flow with bespoke finance solutions and invoice discounting.
Whilst their market place included the UK, their specialist knowledge was in the growth areas of The Middle East and Africa as well as countries in Europe. Their existing invoice discounting supplier was not comfortable with the level of growth they were achieving in these markets, forcing them to look for an alternative invoice discounting provider. As with most recruitment companies it is vital, when achieving growth to have access to reliable and confidential finance facilities to permit uninterrupted service to their blue chip client base.
Growing the Business Quickly
The previous experience in this market meant that the directors and their sales ledger staff were highly skilled at obtaining payment from operating companies in countries in Africa and the Middle East. They were very confident in their ability to meet the requirements of an Invoice Discounting provider. However, with payment terms ranging between 45 and 60 days and contract consultants requiring immediate payment the instant availability of funding that was very important to ensure the future growth of this new Company.
In the early days, if they were to succeed, it meant that at least 90% of invoices needed to be paid within 48 hours.
Niche Market
The involvement (and heavy involvement) in countries such as Nigeria and Saudi Arabia meant that many of the invoice discounting providers were not prepared to provide any form of finance facility. So a small number of more specialist invoice discounting companies were approached with a full business plan illustrating the way in which the company would expand and the involvement they anticipated in each country. Two invoice discounting providers liked the approach and the potential of this company and following negotiations, terms were agreed with one of them to provide confidential invoice discounting.
The invoice discounting contract was agreed when the directors had met with the senior staff of the provider and ensured that they could work effectively with the administration staff. It is important to understand that this type of development is a long-term commitment and a relationship of understanding and service has to develop quickly between the recruitment company and invoice finance provider to ensure that growth is not held back.
Future Expansion
It is significant that, although the business plan was ambitious, this company was running six months ahead of its target within five months of implementation of the new invoice discounting facility.
To find out more about invoice discounting for your business, contact Martingales for a free assessment. Martingales specialise in taking the strain out of corporate cash flow with bespoke finance solutions and invoice discounting.