In the world of permanent recruitment, a successful placement is often seen as the finish line. But after the candidate starts, another process kicks in—waiting to receive your perm fees.
While these fees represent a core revenue stream for many agencies, they’re not always paid quickly. In fact, delayed perm fee payments can quietly disrupt cash flow, limit growth opportunities, and create financial pressure that’s hard to ignore.
Why perm fees take time to hit your account
It’s common for perm fees to come with payment terms of 30, 60, or even 90 days after the invoice is raised. Some clients delay even further due to internal approval processes, seasonal cash flow issues, or slow admin.
During that waiting period, your agency has already invested:
Consultant time spent sourcing and managing the placement
Business development and client servicing activity
Overheads such as CRM systems, salaries, and commission
Operational costs to keep the desk running
So while the perm placement may be ‘done’, the income is far from banked.
The true cost of delayed perm fee payments
Waiting on perm fees might seem like a normal part of agency life—but the real cost is often underestimated. Aside from the immediate cash flow pressure, delayed income can prevent you from:
Hiring additional consultants to grow your desk
Investing in tools or marketing to win more business
Paying commissions or bonuses on time
Seizing time-sensitive opportunities like tenders or new clients
In short, your agency’s momentum can slow, despite having made successful placements.
How to manage the impact of slow-paying perm fees
You may not be able to control when every client pays, but you can take steps to reduce the risk and smooth your cash flow:
1. Be proactive with payment terms
Include clear perm fee payment terms in your contracts and set expectations early. Make sure your clients know when and how payment is due.
2. Improve your credit control process
Don’t let invoices sit unchased. A structured follow-up process with reminders and escalation steps can help you get paid faster.
3. Review your client mix
If a large percentage of your perm revenue comes from slow-paying clients, you may need to rebalance your portfolio to reduce risk.
4. Consider funding solutions for perm fees
Specialist finance products can advance part of your perm fees as soon as the candidate starts—so you don’t have to wait for the client to pay. This can provide more predictable cash flow and free up working capital.
Key takeaways
Perm placements are a key driver of revenue for many recruitment agencies, but they don’t always translate to immediate cash in the bank. Understanding the hidden costs of delayed perm fee payments is essential for protecting your cash flow and keeping your growth plans on track.
By combining strong credit control with flexible funding options, agencies can turn successful placements into working capital faster, and with less stress.
Struggling with slow perm fee payments?
Get paid upfront for your perm invoices
We’re not just another funder. RFS is a long-term partner to UK recruitment agencies, offering:
- Flexible, scalable finance
- Industry-specific expertise
- Trusted, personal support
- Innovative tech through the RFS portal
