Lets discuss Invoice Factoring Finance For Neutral Vendor Recruitment Agencies in the UK.
If you are placing temporary staff via a Neutral Vendor like GRI or Neuven, then you may may need to work with a specialist invoice finance provider.
The largest Neutral Vendor Managed Service Provider (MSP) in the UK and the world is Geometric Results (GRI). In the UK alone they manage over £1 billion in recruitment spend, with much of this being placed by its 3,750 partner agencies.
However recruitment agencies placing temporary staff via a neutral vendor like GRI, will have to wait for invoices to be paid. This can put a strain on cash flow, especially if staff need paying before the invoice is settled.
Its possible to using invoice finance and factoring to release up to 100% of any unpaid invoices or timesheets.
Invoice Finance For Neutral Vendor Recruitment Agencies
When placing temporary staff via a Neutral Vendor managed service provider (MSP), it makes its more difficult to secure invoice finance. This is mainly due to:
- High debt concentration with one single debtor, the Managed Service Provider (MSP)
- Invoicing a managed service provider (MSP) instead of the end client
- Contractual terms with the MSP, such as paid when paid clauses
These issues mean that some highstreets banks and mainstream invoice finance companies, will not provide factoring.
However you temporary recruitment agencies can still access invoice finance from specialist providers that work with recruitment agencies in this sector.
We can also help with RPO Invoicing, which is similar to going via an MSP.
Invoice Factoring For Neutral Vendor Recruitment Agencies
We work with a number of invoice factoring lenders that supply finding to recruitment agencies, working with Neutral vendor contracts. Typical features include:
- Release 80-100% of unpaid invoices
- New start-ups accepted
- Timesheets funded
- Access funds from timesheets/invoices in 24 hours
- Credit Control Assistance
As an independent factoring broker, we can source lenders for you that accept neutral vendor/MSP debtors.
Invoice Discounting For Neutral Vendor Agents
For agencies doing over £250k annual turnover, you may be able to apply for invoice discounting. Typical features include:
- Confidential Invoice Discounting
- In house credit control
- Funding of bulk timesheets
- Release up to 100% of unpaid invoices/timesheets
Financing Neutral Vendor Invoices & Timesheets
One of the issues that recruitment agencies face when working with neutral vendor contracts is getting paid. Its not unusual to get paid between 14 and 45 days after a invoice or timesheet has been approved.
This can cause a cashflow issue when staff wages need to be paid. The solution to this problem is using an invoice finance facility such as factoring or discounting.
Which Neutral Vendors Can You Factor Against?
Although individual contracts will effect the invoice finance terms you can get, most neutral vendor invoices can be factored.
This includes the following large UK neutral vendor providers:
- Geometric Results (GRI)
- TFS Healthcare
- Neuven – Venneu portal
- NLG RPO – Infinite MP portal
- Bloom Procurement Services
- Central Recruitment Services – CentralAxis
- Retinue Solutions
- OPERAM Managed Solutions
Factoring GRI Invoices & Timesheets
If you are a recruitment agency working with GRI in the UK, then you can still access Factoring against your invoices.
Factoring can provide a long term solution to cash flow pressure and support your business as it grows.
- Release Up To 100% of Unpaid Invoices
- Funds within 24 hours
- Revolving Credit Facility
FAQ: Neutral Vendor Invoice Finance Frequently Asked Questions
Here are a few useful frequently asked questions about neutral vendors and related finance.
What Is A Neutral Vendor?
A neutral vendor is a where a Managed Service Provider (MSP) manages staff resourcing for a client, but doesn’t directly do the recruiting of temp or permanent staff. The recruiting is done by a panel of recruitment agencies, picked and managed by the neutral vendor.
Examples of neutral vendors are Geometric Results (GRI) and NLG RPO.
How Do Neutral Vendors Make Money?
A neutral vendor provider, manages the whole recruitment process for large organisations and public sector. However all recruitment is done by a panel of approved recruitment agencies, whom a fee is charged by the managed service provider.
The recruitment agencies working for a neutral vendor provider, hire the required staff for the end client. However all communication and billing is done via the neutral vendor.
Many neutral vendors only pay their recruitment agencies between 14 – 45 days after supply of the invoice or timesheet. This causes cashflow issues which can be resolved using Invoice Finance.
What Is A GRI Recruitment Agency?
Temporary recruitment agencies can place candidates via a managed service provider (MSP) like Geometric Results (GRI). Rather than working direct with numerous organisations, you just fulfil jobs via GRI.
You can find out more on the GRI agency website.
List of UK Neutral Vendor Providers
Here is a list of some of the biggest Neutral vendor managed service providers operating in the UK:
Geometric Results (GRI)
Neuven – Venneu portal
NLG RPO – Infinite MP portal
Bloom Procurement Services
Central Recruitment Services – CentralAxis
OPERAM Managed Solutions
Did De Poel Change Name to GRI?
In January 2018 the UK’s leading neutral vendor temporary recruitment provider De Poel was acquired by US company Geometric Results Inc.
Later that year in June 2018 De Poel was rebranded and renamed GRI.
How to Login to etips and check outstanding invoices?
If you are looking to get invoice finance for your GRI invoices, then you will need to get debtor list.
You can access your GRI invoices from the etips login area by suing this link https://e-tips.com/
Apply: Neutral Vendor Recruitment Factoring & Discounting
As an independent invoice factoring brokers, we search the market to find you the finance you need.
We do not charge any broker fees for our service.
Fill in the form below or call us on 0161 5469128 (Mon – Fri 9-5).