Arranging Invoice Finance against RPO invoices can sometimes be a difficult task, this is due to a number of factors that we will explore in this article.
There are huge revenue opportunities for recruitment agencies to work with a Recruitment Process Outsourcing (RPO) company. However long payment terms of 30-60 days can make cashflow difficult to manage.
That’s why many recruitment companies who work with RPO’s use invoice finance to get access to unpaid invoices and manage cashflow. However this can be more difficult when working with a Recruitment Process Outsourcing company due to contract terms and also concentration of debt with one client.
Invoice Finance For RPO Invoices
When recruiting staff via a Recruitment Process Outsourcing company such as De Poel, you are not invoicing the end client. This can make securing funding more difficult but its still possible with the right specialist funder for your business.
We can also help with Neutral Vendor Invoice Finance, which is similar to RPO invoicing.
Issues caused by RPO invoices include:
- High debt concentration with one single client (the RPO)
- Invoicing a Recruitment Process Outsourcing (RPO) instead of the end client
- Contractual terms with the RPO, such as paid when paid clauses
There are two types of invoices finance, factoring and discounting. We discuss below the features of each, or you can find out more on our article Invoice Discounting vs Factoring – What’s The Difference?.
Invoice Factoring For RPO Recruitment Agencies
We work with a number of invoice factoring lenders that supply finding to recruitment agencies who have large RPO invoice balances.
Typical features include:
- Release 70% to 100% of unpaid invoices
- No trading history required
- Funding of Timesheets for temps
- Access funds within 24 hours
- Credit Control Included
As an independent factoring broker, we can source lenders for you that accept RPO invoices and high debt concentration.
Invoice Discounting For RPO Agents
If your recruitment company is doing over £250k annual turnover, you may be able to apply for invoice discounting. Typical features include:
- Confidential Invoice Discounting
- Do your own credit control
- Funding of bulk timesheets
- Release up to 100% of unpaid invoices and timesheets
Apply: RPO Invoice 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).