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.
Rapid funding turnaround times
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.
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.
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.
Access to specialist 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.