Recruitment Finance
Recruitment Firm Employs The Right Solution
Founded in 1993, Prime Staff is a fast growing recruitment consultancy that provides temporary staff for the construction, industrial, engineering and commercial sectors. The firm has offices in Glasgow and Paisley, and currently employs 12 staff.
Prime Staff found that the inherent challenges experienced by the recruitment industry are often exaggerated by the banks’ inflexibility to provide the higher levels of funding required by firms operating in the high value temporary market.
Prime Staff’s Managing Director, Danny McIntyre explains, “Cash flow is always a major strategic challenge for recruitment companies. We pay our temporary workers weekly and also invoice our customers weekly. However, we often have to wait 30 days for payment, so cash flow problems are inevitable.
“We looked at a number of finance options before our accountants recommended factoring. Bibby Financial Services impressed us with their commercial awareness and understanding of our industry and we opted for a factoring facility. This facility releases up to 85 per cent of the value of our invoices as they are raised, giving us an ongoing supply of cash linked to our sales. They then chase up the outstanding amounts from our customers, paying us the balance of the invoice less their service fee.”
The benefits of factoring within the recruitment industry are profound. It has allowed Prime Staff to take on a greater number of contracts with more staff placed because it enables them to pay their temporary staff. The collection service allows the company to focus on its core skill of placing people in jobs while Bibby ensures that payment is received.
Danny adds, “Factoring is now incorporated into Prime Staff’s long-term business strategy. Our relationship with Bibby Financial Services has allowed us to develop plans for the future which include the launch of three new offices, and to double turnover in the next three years. Bibby Financial Services are fully supportive of our plans to expand and we are on target to meet our goals.”
