UK Finance Firm Launches £40M Recruitment Fund

Skipton Business Finance is putting up £40 million ($48.5 million) to aid U.K. businesses in the recruitment space, BDaily News reported on Monday (Aug. 19).

E-recruitment is a growing segment, but economic uncertainty has recruitment agencies struggling to find the funding necessary to transform.

“Skipton Business Finance is proud to be offering this amount of money for recruitment businesses,” Managing Director Greg Bell told BDaily News.

He added, “This scheme can give a business the support it needs to transform and we are proud to be involved in this process. We have assisted a number of recruitment businesses who have opted to use one of our Invoice Finance solutions, subsequently helping their growth.”

Skipton Business Finance offers a variety of invoice financing options, including invoice factoring and discounting, as well as enterprise finance guarantee (EFG) loans.

Invoice factoring is the concept of selling unpaid accounts receivables (AR) to a company with the cash up-front. The funder takes responsibility for running the credit control process and will pursue the debtor for payment. This allows businesses to draw up to up to 90 percent of the invoice value without having to wait 30 or more days for customers to pay.

Factoring can play an essential role in the health of a company, particularly small businesses. As companies struggle to manage longer payment terms, traditional banks will often turn away young firms for lack of reliable credit history and assets to underwrite a line of credit or other loan product. AR financing can provide the working capital necessary to stay afloat while a company builds up revenue streams.

Jack Stieber, president of American Receivable Corp, said companies could find success with their factoring strategies if they find the right partner, emphasizing customer relationships for the AR financing world.

“That’s what factoring is here for,” Stieber said. “It’s bridge financing.”