Running a recruitment agency can be extremely challenging when facing long payment terms. Most agencies will need to pay their contractors before actually receiving payment from their customers, which can easily create a cashflow problem. Many agencies turn to factoring or invoice discounting to solve this problem by releasing up to 100% of the invoice value immediately. This will give the agency the ability to pay wages on time without any concerns of when their invoices will be paid. This is how it works:
This type of facility pays temporary staff or contractors on your behalf (weekly, biweekly or monthly), invoices clients directly and manages timesheets (online or manually) with the provision of full back-office systems to manage the pay and bill process.
