Is your Working Capital still working?

No one likes paying for something that they don't receive.

Why then are so many businesses in recruitment willing to accept a cost to float their payroll based on their turnover rather than the funds that they use? Chris Slack from The Finance Consultancy writes.

The fact is, we are all willing to pay for piece of mind.

It's widely accepted that many businesses in Recruitment struggled in 2024.

Regardless of the industry, any struggling business owes it to themselves to review their fixed costs and most successful businesses will review them anyway as a matter of course.

The funding that's appropriate for a Start Up is rarely still appropriate for a business after it's been trading for two years and certainly won't be appropriate for any business trading five years or longer.

However, for many businesses when it's not broken, don't fix it. But how would you know if it's broken?

If your business falls into this category, then it's important for you to be reviewing your working capital more frequently.

What do the best businesses in recruitment do?

• They review their working Capital and funding requirements annually

• They look for funding options with minimal costs when they don't need it

• They set up their facilities with a view to opportunities rather than limiting their thinking to a backup plan

The funding options and pricing available to recruitment businesses in 2025 are worth every recruitment business taking notice:

• More funders willing to fund your business without changing bank accounts – you can get paid directly by your clients again!

• You can look at many sharp funding options for paying subcontractors and other bills without lending against an invoice!

• You can lend against international invoices! You can lend against permanent placement income as well as any milestone billing as well as contracting income.

• Some lenders will also allow a built-in insurance option to protect you as well

If you are willing to look into lowering fixed costs for your business then its worthwhile engaging your advisers into looking into alternative funding options.

The Finance Consultancy is proud to be a leading APSCo Partner in 2025 and welcomes any questions and queries from Sole Traders to Public Companies.

We tender out for all our clients across over 20 lenders specific to this space to ensure clients benefit from greater competition and choice specific to their business needs.