Aldermore provides £1.4m finance facility to recruitment resources provider
3R Finance Limited, which offers services to recruitment agency start-ups, has agreed a £1.4m finance facility with Aldermore, a lender and savings bank, which recently celebrated its seventh anniversary.
3R Finance currently works with around 100 recruitment companies and has implemented a system with Aldermore whereby recruiters can be remunerated directly by 3R Finance through an invoice finance facility. This means that the recruiting companies will not face any delays in getting paid by their clients, removing an obstacle which can often lead to start-ups failing.
Aldermore say its finance facility will allow Leeds-and-Southampton-based 3R Finance to grow its customer base further from 100 to 500, giving even more clients the tools and resources they need to become a successful independent recruitment consultancy.
By working with 3R Finance Limited, recruitment professionals in the process of founding their own agency can focus on continuing to provide recruitment services while 3R Finance Limited manages other aspects of their business for them, such as setting up their back office, CRM, and IT platform.
Chris Powell, director of operations at 3R Finance Limited, explained, “All of the recruiters who’ve joined 3R have shown consistent year-on-year growth and the funding Aldermore has provided will enable us to help even more recruiters to take the plunge and start their own business.
“We were deliberating on whether to use a business loan to draw down from or to go with an invoice discounting facility and in hindsight we are so glad we did the latter. When we were looking at finance providers to help us grow 3R Finance Limited, Aldermore stood out in its ability to offer a facility which better suited our needs. The Aldermore team made it their mission to completely understand 3R Finance’s business model, and they were able to offer us a fully tailored service as a result.
“I’m looking forward to the next stage in 3R Finance’s growth and to the new opportunities this funding will allow us to explore.”
Jonathan Myerscough, regional sales manager of invoice finance at Aldermore, said, “3R Finance is a great example of the kind of company Aldermore can help develop. By providing an invoice discounting facility we can help recruiters to pay their temps even before their corporate clients have settled their bills, especially in today’s market where there is currently a high demand for employees and temps.
“The directors at 3R Finance have a wealth of experience in the sector and are well placed to ensure that their business goes from strength to strength. I’m looking forward to working with 3R Finance and to supporting them in taking the company to the next level.”