Invoice discounting for recruitment agencies
Thursday 1st May 2025

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In this article:
- How does invoice discounting work for recruitment agencies?
- Benefits of invoice discounting for recruitment agencies
- Is invoice discounting right for your recruitment agency?
- How Novuna Business Cash Flow can support your recruitment agency
How does invoice discounting work for recruitment agencies?
The invoice discounting process for recruitment agencies typically involves the following steps:
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You provide recruitment services and issue invoices to your clients.
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Submit these invoices to the finance provider.
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Receive a significant percentage (often up to 90%) of the invoice value as an advance.
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Continue to manage your sales ledger and collect payments from clients.
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Once the client pays, the remaining balance is released to you, minus any fees.
This approach ensures that you have the necessary funds to cover operational costs without waiting for client payments.
Benefits of invoice discounting for recruitment agencies
Invoice discounting offers several advantages:
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Improved cash flow: Access funds tied up in invoices to meet payroll and other expenses.
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Maintained client relationships: Since you manage collections, clients remain unaware of the financing arrangement.
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Flexibility: Funding grows in line with your sales, supporting business expansion.
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No additional debt: Unlike traditional loans, you're not taking on new liabilities.
Is invoice discounting right for your recruitment agency?
Invoice discounting is particularly suitable for agencies that:
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Have an established credit control system.
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Prefer to maintain direct client communication.
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Experience cash flow gaps due to delayed client payments.
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Seek a confidential financing solution.
If your agency meets these criteria, invoice discounting could be an effective tool to enhance financial flexibility.
How Novuna Business Cash Flow can support your recruitment agency
At Novuna Business Cash Flow, we offer tailored invoice discounting solutions to meet the unique needs of recruitment agencies. Our services include:
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Up to 90% advance on invoice values.
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Confidential facilities to maintain client relationships.
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Flexible funding that scales with your business.
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Expert support to help manage your cash flow effectively.
By partnering with us, you can focus on growing your agency while we help manage your financial needs.