Recruitment
Recruitment Sector Credit Insurance: Safeguarding Your Cash Flow
Running a successful recruitment business means managing risk, maintaining cash flow, and ensuring your clients pay on time. But what happens when they don’t? Late payments and insolvencies can leave your agency exposed to financial losses, putting your business at risk. That’s where we come in.
At UK Credit Insurance, we specialise in credit insurance for the recruitment industry, protecting your agency from bad debts and unpaid invoices. With our tailored policies, you can focus on growing your business with confidence, knowing you’re protected against financial uncertainties, especially when you have already paid your workers!
What are the benefits to Recruitment Companies?
Improved Access to funding
Recruitment agencies that insure their outstanding invoices can present a stronger financial position to leaders, often leading to more favourable loan terms and reduced borrowing costs. This is particularly useful when negotiating invoice Finance or Factoring deals.
Debt Collection Assistance
When clients fail to make payments, credit insurers can step in to support the debt collection process, utilizing their expertise to recover outstanding funds more effectively. By having a large global insurer fighting your corner, you are more likely to receive funds without needing to make a claim. Often the majority of the costs incurred are also covered by the insurer.
Safeguard Against Market Volatility
If you are heavily concentrated into a particular sector, you are more at risk than a diversified client base. Credit insurance helps recruitment businesses remain financially stable by protecting them from the risks associated with economic downturns, industry fluctuations, and political instability.
Customised Policy Solutions
We can provide tailored coverage to meet the specific requirements of recruitment agencies, incorporating provisions for self-billing, unsigned timesheets, and “pay when paid” agreements to ensure comprehensive protection. The rising use of RPO’s or MSP’s has meant that agencies have needed to look closely at their contractual obligations and who their risk actually sits with. We can assist here with our many years of experience in the sector.
Ensuring every angle is covered
Funding
If you currently have funding against your ledger, but are looking for a second opinion then we can benchmark your current facility against funders who specialise in the recruitment sector. They understand the value of a strong credit insurance policy, and will work to fund against our limits. They also understand the intricacies of the sector and will look to provide a bespoke policy for you.
Concentration Issues
Do you have a large percentage of your ledger outstanding to one or two key clients? Not only is this potentially fatal if one of them enters insolvency, but it can make funding difficult. Many lenders will not fund invoices with such high concentration risks. By approaching the whole market, we can usually find a solution that suits you and also your funder.
Unsigned time sheets
In general, bad debt protection policies will look at signed time sheets only as a basis for looking at bad debts. As Credit Insurance has evolved, it is now possible to look at unsigned time sheets in the event of a client insolvency. This gives far more certainty to you, and your lender(s) in the unfortunate event of a bad debt.
Aggregators/RPO’s
Do you currently run some of your ledger via an RPO? Many sectors, such as Healthcare will operate via 2 or 3 main players and this often restricts funding levels. This can also be on Pay when Paid terms which makes funding extra tricky. We can structure a policy that covers the RPO and the end debtor to ensure you are covered.
Growing Your Business Shouldn’t Mean Risking Your Cash Flow
Talk to an expert today- You focus on what you do best – running your business
- Let us take the risk of non-payment away from you
- Sleep soundly knowing your business is secure