Invoice factoring and discounting can be game-changers for recruitment agencies. With the typical payment terms often extending up to 90 days, these types of asset-based lending can provide the necessary liquidity to sustain operations and seize growth opportunities. Invoice factoring involves selling your invoices to a lending institution, such as Red Fox Finance, for an immediate cash advance, typically up to 85-90% of the invoice value. The factoring company then handles the collection of the invoice, releasing the remaining balance to you, minus a small fee, once your client pays. Invoice discounting works similarly, but you maintain control of your sales ledger and the responsibility of chasing payments. This option is confidential, meaning your clients needn't know about your financing arrangements.

As a recruitment firm, your business might need access to the latest technology and office equipment to stay competitive. Asset finance allows you to invest in these essential assets without the hefty upfront cost. You could lease or hire purchase servers, computers, sophisticated recruitment software, or even office furniture. This arrangement allows you to spread the cost over a period of time, making it more manageable.