Category: News

  • Delayed perm fees: the hidden cost to your recruitment agency

    Delayed perm fees: the hidden cost to your recruitment agency

    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?

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    Get paid upfront for your perm invoices

    We’re not just another funder. RFS is a long-term partner to UK recruitment agencies, offering:

  • Introducing RFS Perm Advance: a smarter way to get paid faster for permanent placements

    Introducing RFS Perm Advance: a smarter way to get paid faster for permanent placements

    We’re excited to announce the launch of RFS Perm Advance – a brand-new funding solution designed to help recruitment agencies get paid faster for permanent placements.

    At Recruitment Funding Solutions, we know that one of the biggest challenges for recruiters placing perm candidates is delayed payment. Whether it’s 30, 60 or even 90 days, long payment terms can put a real strain on cashflow and slow down growth.

    RFS Perm Advance changes that.

    This new solution gives agencies access to a portion of their perm fee immediately after invoicing, helping to smooth out cashflow, reduce admin, and keep your business moving forward with confidence.

    Why we created RFS Perm Advance

    We’ve worked with recruitment agencies across the UK for over a decade, supporting temp, perm and contract growth. Many of our clients told us they wanted to do more perm, but cashflow delays and risk made it hard to scale.

    So, we built a solution that’s simple, flexible and fits neatly into your existing process. Whether you’re a perm-focused agency or a temp business looking to diversify, RFS Perm Advance makes it easier to manage permanent placements without the usual financial pressure.

    How it works

    The process is quick, straightforward and fully supported by our expert team:

    1. Check your client’s credit in the RFS portal

    2. Submit your placement and confirm the terms

    3. We invoice your client on your behalf

    4. You receive your advance, with the remaining balance paid once your client settles

    There’s no need to change your internal systems – it’s all done through the RFS agency portal.

    What are the benefits of RFS Perm Advance?

    Perfect for perm – and temp agencies looking to expand

    If you’re currently focused on temporary placements and thinking about moving into perm, RFS Perm Advance can help make that transition smoother. By removing the long wait for payment, you can start building permanent revenue without putting extra pressure on your finances.

    Let’s talk

    Whether you’re an existing RFS client or new to our services, we’d love to show you how Perm Advance could support your business goals.

    📞 Call us on 0330 053 9439
    📧 Or email us at info@recruitmentfundingsolutions.co.uk

    Or, you can find out more and get started over on out RFS Perm Advance product page:

  • RFS Acedemix safeguarding course updates: Stay compliant with the latest 2024 DfE requirements

    RFS Acedemix safeguarding course updates: Stay compliant with the latest 2024 DfE requirements

    At RFS, we’re committed to ensuring that our clients stay up to date with the latest regulations and requirements. In partnership with Academize, we’ve updated the safeguarding courses included in the RFS Academix package to reflect the 2024 Department for Education (DfE) safeguarding guidelines.

     

    These essential updates mean that education agencies using RFS Academix can have full confidence that their candidates are equipped with the most current safeguarding knowledge, helping agencies stay compliant and continue offering the highest standard of support to schools and educational environments.

    What’s new in the safeguarding courses?

    As part of the latest updates, Academize has introduced new course content focused on several critical areas, including:

    How do these updates benefit your agency?

    By making use of the package of courses available to you through RFS Academix, your agency can ensure that:

    Supporting your education agency’s success

    At RFS, we understand the importance of keeping your candidates fully informed and compliant. By providing the latest safeguarding training, we ensure that your agency is always ahead of the curve.

     

    If you’d like more information about these updates or have any questions, feel free to contact our team or, to learn more about how Academix can help you to scale and manage your education agency, visit the RFS Academix page.

  • Recruitment Funding Solutions shortlisted at the Recruiter Awards

    Recruitment Funding Solutions shortlisted at the Recruiter Awards

    Recruiter Awards Shortlist
    We’re thrilled to announce that Recruitment Funding Solutions has once again been shortlisted for the ‘Industry Supplier of the Year’ category at this year’s Recruiter Awards.

    The Recruiter Awards are an annual event that celebrates excellence and innovation in the recruitment industry. These awards honour companies and individuals who have demonstrated outstanding performance, creativity, and dedication to the world of recruitment and staffing. 

     

    Recruitment Funding Solutions has consistently strived to provide innovative funding solutions and financial support to the recruitment industry. Our deep understanding of the unique challenges faced by recruiters has allowed us to develop tailored services that empower businesses to thrive and grow. By offering flexible funding options, expert guidance, and personalised support, we have become a trusted partner for numerous recruitment agencies across the country.

     

    This year, our commitment to innovation in the recruitment funding space has led to the introduction of two new funding options, RFS Evolve and RFS Academix, giving recruitment agencies more specialist funding solutions than ever before.

     

    Being shortlisted for this prestigious accolade is a testament to the unwavering commitment of our entire team in delivering exceptional services and support to our valued clients. 

     

    Alex Grant, Managing Director of Recruitment Funding Solutions said:

    We’re delighted to have been shortlisted again for the ‘Industry Supplier of the Year’ award at this year’s Recruiter Awards. As a recruitment-specific funding business, we take great pride in servicing the recruitment industry. Well done to our incredible team at RFS and thank you to our wonderful clients who continue to put their faith in us for their funding and back office. We look forward to seeing our colleagues from the industry at this year’s prestigious awards evening in September!

    The Recruiter Awards 2024 ceremony will take place later this year, bringing together industry leaders, professionals, and influencers for an evening of celebration and recognition. We look forward to the event, where the winners will be revealed, and the achievements of outstanding companies and individuals in the recruitment sector will be applauded.

    We would also like to extend our gratitude to the judges for shortlisting our entry and express our sincere congratulations to all the other shortlisted companies. This recognition serves as motivation for our team to continue our pursuit of excellence in supporting the recruitment industry.

    See the full shortlist for the Recruiter Awards 2024 here

  • Is your education recruitment agency prepared for rapid growth? How invoice factoring provides scalability

    Is your education recruitment agency prepared for rapid growth? How invoice factoring provides scalability

    The education industry has been experiencing rapid growth, with increasing demand for teachers, administrators, and support staff in schools. This rising need for recruitment services presents huge opportunities for agencies in the education sector to expand their client base and place more candidates. However, quick growth spurts also create financial and operational challenges that can jeopardise sustainability if not prepared for properly.

     

    Invoice factoring is an ideal solution that allows education recruitment agencies to scale up swiftly during growth periods. By providing flexible funding based on outstanding invoices, factoring gives recruiters the capital required to take on new clients without being hindered by cash flow issues.

    The challenges of growth spurts for recruitment agencies

    When an education recruitment agency experiences sudden business growth, this puts strain on cash flow. With more teachers and staff placed at new schools, there are more unpaid invoices waiting the standard 30-90 days for payment. This ties up substantial capital in receivables.

     

    At the same time, rapid growth requires additional in-house recruiters to sustain and fuel expansion. This significantly increases payroll costs at a time when cash is already tight. Growth is great, but it can seriously impact liquidity and profitability if the recruitment agency lacks access to working capital.

    How invoice factoring provides scalability

    Delayed customer payments also become detrimental during growth spurts. If cash flow dries up, the recruitment agency may be unable to continue sourcing and placing the right candidates. This impacts their ability to take on new business, slowing growth momentum.

    How invoice factoring provides scalability

    Invoice factoring allows education recruitment agencies to gain quick access to capital needed during rapid expansion, overcoming cash burn issues. Factoring companies provide upfront funding for outstanding invoices, turning them into immediate cash rather than waiting weeks or months.

     

    As an agency grows and unpaid invoices rise, more capital is available through the factoring facility. Funding scales in line with revenue growth. This strengthens recruitment operations and prevents disruption to growth plans. Factoring means payroll and other costs can be covered reliably despite delays in client payments.

    How invoice factoring provides scalability

    Partnering with a reputable factoring company also gives recruitment agencies in the education sector access to financial expertise and industry best practices. Unlike traditional lenders, factoring providers such as RFS understand the realities of scaling up a recruitment business. This gives agencies support to pursue new contracts and clients with confidence.

    Scale your education agency with RFS Evolve

    If your education recruitment agency is experiencing or anticipating rapid growth, RFS Evolve is our invoice factoring solution, which provides the flexible funding and financial stability needed to scale up swiftly, as well as a suite of recruitment specific additional features. It transforms unpaid invoices into working capital, so growth is not slowed down by cash flow limitations or delays in customer payments.

     

    What’s more, partnering with RFS gives access to a service designed specifically for recruitment agencies. Unlike traditional lenders, RFS are industry experts with decades of experience in the education recruitment sector. This means we understand the realities and needs of scaling up an education staffing business.

    RFS Evolve allows education recruiters to sustain growth momentum and maximise opportunities without financial constraints or burdens, as well as giving them access to additional expert tools and support all in one place.

     

    Contact the RFS team of today to learn more about how RFS Evolve can strategically fuel your agency’s expansion plans.

    Looking for funding for your education agency?

    Get specialist funding plus so much more with RFS Evolve!
  • The benefits of using specialist recruitment finance for education agencies

    The benefits of using specialist recruitment finance for education agencies

    For education recruitment agencies, having access to sufficient working capital is crucial for funding day-to-day operations and managing growth.

     

    Invoice financing is an effective way to improve cash flow, but turning to a specialist recruitment funder over a traditional lender offers some unique benefits for agencies in this sector.

    Specialist recruitment funders understand education cycles

    Specialist funders understand the invoicing cycles and payment dynamics within the education recruitment marketplace far better than typical banks. Education institutions often have long and complex payment procedures, meaning recruiters must wait extended periods to get paid after candidate placement.

     

    Mainstream lenders struggle to accommodate these sector-specific quirks. Specialist recruitment funders, on the other hand, craft customised finance solutions that align with the delayed invoicing and payment timelines in this industry. Their expertise within education recruitment allows them to confidently finance invoices that banks may deem risky.

    Education cycles

    Rapid funding turnaround times

    Rapid turnaround

    Education recruiters often experience pressing demands for capital during peak hiring periods around academic terms. Traditional lenders may take weeks or months to provide funding, but specialised recruiters can offer rapid turnarounds.

     

    Leading funders such as RFS can approve selected invoices and process payments in a matter of days. This improved access to capital allows agencies to swiftly fill urgent hiring needs as they arise.

    Value-added services

    Beyond just invoice factoring, some specialist recruitment funders, like RFS, provide additional services tailored to the needs of recruitment agencies. These include credit control, payroll funding, and management information specific to staffing.

     

    Such value-added services significantly reduce the administrative workload education recruiters face. This enables agencies to better focus their efforts on sales-generating and growth activities.

    Value added

    Higher advance rates

    Higher advance rates

    Specialist funders typically offer higher prepayment rates against approved invoices compared to mainstream lenders. This means education recruiters gain access to a larger proportion of capital upfront before the full invoice amount gets paid.

     

    These higher advance rates provide increased usable working capital to bridge financial gaps between candidate placement and eventual payment.

    Tailored customer service

    Since specialist funders solely work with recruitment agencies, they develop dedicated teams and technologies specifically designed to deliver excellent customer service. This results in a much smoother financing experience compared to dealing with impersonal high street banks.

     

    Recruitment finance experts become familiar with each client’s needs and provide personalised guidance. The improved customer service saves agencies time and hassle while accessing capital.

    Specialist customer service

    Access to specialist education recruitment tools

    Education recruitment tools

    Solutions like RFS Evolve allow education recruiters to not only improve cash flow with invoice financing but also help them to access tailored recruitment tools and support through enhanced packages. These include:

     

    • Branded templates and portals – Improve employer brand with tailored terms and other documents.
    • E-Learning modules – Help candidates develop skills valued by schools.
    • Back office support – Let experts handle payroll, compliance and reporting.
    • Responsive website – Get a recruitment website optimised for any device.

    Such platform-based solutions consolidate services education agencies commonly need. This enables recruiters to scale operations efficiently under a single specialised provider.

    Partner with a specialist for growth

    Invoice financing through a mainstream lender provides basic working capital. But leveraging a specialist recruiter financier like RFS offers education recruitment agencies so many more unique advantages. These include expertise in education cycles, rapid funding, value-added services, low costs, bespoke customer service, and tailored recruitment tools.

     

    By tailoring solutions to the recruitment industry, specialist funders allow education agencies to not just survive but thrive. Contact the RFS team today to learn how an RFS partnership can pave the path for sustainable growth.

    Partner for success

    Looking for funding for your education agency?

    Get specialist funding plus so much more with RFS Evolve!
  • Recruitment Funding Solutions launches RFS Evolve

    Recruitment Funding Solutions launches RFS Evolve

    Recruitment Funding Solutions unveils a new specialist funding product for recruitment agencies ready to scale

    Recruitment Funding Solutions (RFS), a leading provider of specialist recruitment funding support, is thrilled to announce the launch of its newest funding solution, RFS Evolve. Designed primarily to cater to larger and more well-established recruitment agencies, RFS Evolve empowers agencies to take on greater risk and debt management while enjoying exceptional support and competitive pricing.

     

    RFS Evolve is tailored to address the specific challenges and opportunities faced by larger agencies, providing them with the tools they need to effectively manage risk and debt, and to fuel their growth.

    Key features of RFS Evolve include:

    • Enhanced risk management: empowering larger agencies to take on more risk while maintaining control and oversight of their debt management. It provides a flexible and customisable framework to adapt to changing business needs.
    • Dedicated recruitment specialists: agencies benefit from the expertise and guidance of dedicated recruitment specialists who provide personalised support throughout the funding process.
    • Advanced technology integration: a cutting-edge management system provides users with real-time information on their sales ledger position and bespoke portals for effortless management of payroll, assignments, timesheets, and instant access to up-to-date financial information.
    • Competitive pricing: RFS Evolve is priced competitively in the market, ensuring that larger agencies can access the funding they need at favourable terms. RFS remains committed to delivering value to its clients without compromising on quality.

    Aldermore provided a comprehensive funding package to support RFS’s growth plans. Following an introduction by Ian Moorton of Equity & Debt, RFS Evolve was jointly developed between RFS and Equity & Debt who worked collaboratively with Aldermore. This collaboration underscores the immense value of combining expert knowledge and financial strength in the recruitment industry. This partnership resulted in a funding solution that not only provides financial support but also leverages the specialised expertise needed to navigate the unique challenges and opportunities that recruitment agencies face.

    Alex Grant, Managing Director at Recruitment Funding Solutions said: “We are thrilled to introduce RFS Evolve to the recruitment industry. This ground-breaking funding product reflects our dedication to meeting the evolving needs of recruitment agencies. With RFS Evolve, agencies can embrace greater risk and take control of their debt management while receiving exceptional support from our team of recruitment specialists.”

    Chris Meldrum, National Business Development Director for Invoice Finance at Aldermore comments: “It’s been fantastic to work with the team at RFS to help provide the funding solutions needed to bring this new RFS Evolve product to the market. We’re looking forward to seeing how it will help recruitment agencies to grow.”   

    RFS Evolve is available to recruitment agencies throughout the UK, and whilst it is well suited to larger, more established agencies, the team are happy to discuss applications on an individual basis and give guidance on the most suitable funding options available. To learn more about RFS Evolve and how it can benefit your agency, click here.

    Notes to editors

     

    About Recruitment Funding Solutions:

    Recruitment Funding Solutions (RFS) is a leading provider of specialist recruitment funding support to agencies of all sizes and stages of maturity. With a deep understanding of the recruitment industry, RFS offers funding solutions designed to empower agencies to grow and thrive. RFS is committed to delivering exceptional service, backed by a team of dedicated recruitment specialists. For more information, visit www.recruitmentfundingsolutions.co.uk

     

    About Aldermore:

    Aldermore backs more people to go for it, in life and business. We get finance to people who want to get on in life; building businesses, buying property and purchasing vehicles. And we champion equality by supporting those that the big traditional banks can’t or won’t help.  Aldermore Group is part of FirstRand Group, the largest financial services group in Africa by market capitalisation.

     

    About Equity & Debt:

    Equity & Debt is an experienced advisor in the alternative finance sector, serving private equity firms, lenders and trading businesses. Known for creative solutions and effective deal closures, the company prioritises relationship-building and simplicity in financial matters. For more information visit: https://www.equityanddebt.com/

     

    Media Contact:

    Kelly Croutear

    Marketing Executive – Bluestones Investment Group

    Kelly.croutear@bluestonesgroup.co.uk

     

  • Alex completes end-to-end Windermere swim for CALM

    Alex completes end-to-end Windermere swim for CALM

    Recruitment Funding Solutions is proud to announce that our Managing Director, Alex Grant, successfully completed an end-to-end charity swim of Lake Windermere last Saturday, 8th July 2023.

    Alex managed to surpass his original fundraising target of £1,000, raising a total of £1,280 for mental health charity, Campaign Against Living Miserably (CALM). 

     

    About Campaign Against Living Miserably (CALM)

     

    Campaign Against Living Miserably (CALM) is leading a movement against suicide. Every week 125 people in the UK take their own lives. And 75% of all UK suicides are male. CALM exists to change this by offering life-saving services, provoking conversation, and bringing people together to reject living miserably. From advice on their site to free, confidential chats with our helpline staff, online or on the phone, CALM are here for whoever needs them, every day. No matter what. £8 is enough to fund one potentially life-saving call.

     

    About the challenge

     

    As the longest lake in the country, Windermere end-to end is England’s longest swim. The total distance of the swim is 17.7km. It’s not just the distance that makes the swim a real challenge of mental and physical endurance either – Windermere is also well known for it’s colder water temperature, with the average water temperature  ranging from 11°C to 15°C at this time of year.

    I’m delighted to have completed the Windermere swim. During these longer swims, you have a lot of thinking time which can be good and bad. It’s in those moments when you’ve been swimming for 4 or 5 hours and you’re starting to tire and shiver a bit that it’s important to remember why you’re doing it all. I know the money raised as part of this event will be put to fantastic use and will benefit lots of people suffering with their mental health so the brief period of suffering in a cold lake in the Lake District was well worth it to support people that are suffering themselves. We’re already looking towards the next bigger swimming challenge to hopefully raise even more money for important causes like CALM

    We’d like to congratulate Alex once again on this fantastic achievement, and also extend our heartfelt thanks to everyone who donated.

     

    If you’d like to find out more about Alex’s journey and training towards the Windermere you can visit his JustGiving page here.

  • Recruitment Funding Solutions shortlisted for the Recruiter Awards 2023

    Recruitment Funding Solutions shortlisted for the Recruiter Awards 2023

    Recruitment Funding Solutions are thrilled to announce that we have been shortlisted for the highly regarded Recruiter Awards 2023.

    RFS has been shortlisted in the highly competitive category of ‘Recruitment Industry Supplier of the Year’ for our innovative recruitment agency financing solutions.

    We've been shortlisted recruiter awards

    The Recruiter Awards are an annual event that celebrates excellence and innovation in the recruitment industry. These awards honour companies and individuals who have demonstrated outstanding performance, creativity, and dedication to the world of recruitment and staffing. Being shortlisted for this prestigious accolade is a testament to the unwavering commitment of our entire team in delivering exceptional services and support to our valued clients.

     

    Alex Grant, Managing Director of Recruitment Funding Solutions said:

    We are delighted and humbled to have been shortlisted for this year’s Recruitment Industry Supplier of the year Recruiter award. Whilst the winner will obviously be announced on the evening, being shortlisted in this category, amongst other excellent businesses in our field, acts as an acknowledgment of the incredible hard work and commitment that our entire team put into supporting the valuable client base we work with. We very much look forward to what, I’m sure, will be an exciting evening later in the year.

    Recruitment Funding Solutions has consistently strived to provide innovative funding solutions and financial support to the recruitment industry. We have a deep understanding of the unique challenges faced by recruiters, which has allowed us to develop tailored services that empower businesses to thrive and grow. By offering flexible funding options, expert guidance, and personalised support, we have become a trusted partner for numerous recruitment agencies across the country.

    The Recruiter Awards 2023 ceremony will take place later this year, bringing together industry leaders, professionals, and influencers for an evening of celebration and recognition. We look forward to the event, where the winners will be revealed, and the achievements of outstanding companies and individuals in the recruitment sector will be applauded.

    We would also like to extend our gratitude to the judges for shortlisting our entry and express our sincere congratulations to all the other shortlisted companies (see below). This recognition serves as motivation for our team to continue our pursuit of excellence in supporting the recruitment industry.

     

    See the full shortlist for the Recruiter Awards 2023 here.

  • New website launch

    New website launch

    We’re pleased to announce the launch of our new recruitment funding website offering leading-edge features and functionality, along with an expanded range of funding products for recruitment agencies.


    The website’s redesigned interface includes simplified navigation, enhanced focus on user experience, and expanded mobile capabilities. Building on the phenomenal success of our initial recruitment funding product – RFS Protect (which provides 100% risk-free funding for recruitment agencies of all sizes), we now offer RFS Evolve, typically for more-established agencies that want to have more control over their funding, and debt/risk management.


    Managing Director Alex Grant, had this to say about the new site:

    We’ve listened to our customers and created an enhanced platform to support them, whilst also expanding our funding provision to include a more flexible funding product that’s typically suitable for larger or more well-established agencies. It’s something many of our clients were asking for as they grew and developed with us, so it’s a natural evolution for our business.

    We believe this new platform is a significant step forward in providing easy access to specialist recruitment agency funding options; and with this launch, we hope to further empower our recruitment partners to continuing growing their businesses, fully supported by our funding products.

    New RFS website
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