Aldermore launches recruitment finance offering
Over the past year, UK employment has risen to near pre-financial crisis levels and a recent Aldermore survey found that one in three UK SMEs plan to hire more staff in the next year.* Recruitment agencies play a key role in matching employees with employers and with the recruitment market picking up, flexible and timely cash flow is more important than ever for agencies looking to place candidates in roles.
Pay & Bill Finance offers recruitment agencies a simple solution to the funding gap experienced between paying candidate wages and being paid by their customers. Aldermore is working with Mazars LLP to offer a seamless solution whereby Mazars process timesheets, calculate worker salaries, including taking account of all the relevant taxes and deductions. Mazars will raise invoices and payslips all branded in the agency’s logo, assign the invoices to Aldermore who will then pay 100% of candidates wages on time whilst holding reserves for HMRC deductions and fees. The residual balance is then paid to the agency thereafter. Aldermore will manage the credit control for the agencies.
Andrew Dixon, director of specialist finance at Aldermore, said, “Recruiters play a vital role in helping growing businesses find the right workers for the job. Temporary recruitment agencies often experience issues with cash flow at some point in their business cycles since candidates need to be paid on time, often on a weekly basis, whilst their customers often settle their invoices at a later date.
“The recruitment industry is a key focus for Aldermore and we are always looking for ways to make life easier for SMEs operating in the sector. With Pay & Bill Finance we can offer an end-to-end solution for temporary recruitment firms leaving them free to focus on sourcing the right staff for their customers. The service fees for both Aldermore and Mazars are expressed as a percentage of the agency turnover. This makes it extremely easy for the agency to calculate the cost of the facility. The additional benefit is that Aldermore’s finance and Mazars’ back office grows in line with the agency, which makes it a solid solution to help agencies grow.”