Late Payment
Recruitment Firm Employs The Right Solution
Founded in 1993, Prime Staff is a fast growing recruitment consultancy that
provides temporary staff for the construction, industrial, engineering and
commercial sectors. The firm has offices in Glasgow and Paisley, and
currently employs 12 staff.
Prime Staff found that the inherent challenges experienced by the
recruitment industry are often exaggerated by the banks’ inflexibility to
provide the higher levels of funding required by firms operating in the
high value temporary market.
Prime Staff’s Managing Director, Danny McIntyre explains, “Cash flow is
always a major strategic challenge for recruitment companies. We pay our
temporary workers weekly and also invoice our customers weekly. However, we
often have to wait 30 days for payment, so cash flow problems are
inevitable.
“We looked at a number of finance options before our accountants
recommended factoring. Bibby Financial Services impressed us with their
commercial awareness and understanding of our industry and we opted for a
factoring facility. This facility releases up to 85 per cent of the value
of our invoices as they are raised, giving us an ongoing supply of cash
linked to our sales. They then chase up the outstanding amounts from our
customers, paying us the balance of the invoice less their service fee.”
The benefits of factoring within the recruitment industry are profound. It
has allowed Prime Staff to take on a greater number of contracts with more
staff placed because it enables them to pay their temporary staff. The
collection service allows the company to focus on its core skill of placing
people in jobs while Bibby ensures that payment is received.
Danny adds, “Factoring is now incorporated into Prime Staff’s long-term
business strategy. Our relationship with Bibby Financial Services has
allowed us to develop plans for the future which include the launch of
three new offices, and to double turnover in the next three years. Bibby
Financial Services are fully supportive of our plans to expand and we are
on target to meet our goals.”
