Permanent Recruitment Factoring has often been challenging to source relative to sourcing a factoring facility for temporary recruitment.

While temporary recruitment has an excellent audit trail by way of an agreed payment schedule, a purchase order and signed timesheets permanent recruitment is dogged by onerous terms and conditions which can reneder an invoice worthless if the candidate leaves withing a given period. As such the perceived security of any lender is reduced dramatically.

Permanent recruitment was for many years considered worthy of a 50% prepayment at best and this is still the case with many lenders. In fact some lenders will not look at a recruitment company where the permanent recruitment accounts for 30% of turnover.

I am glad to say that this is not the case with all lenders.

Several permanent recruitment businesses have approached us recently looking for new facilities or looking to improve on existing invoice factoring facilities.

Smart Factoring Quotes have managed to achieve a 70% prepayment level on both invoice factoring facilities and invoice discounting facilities.

There are clearly some invoice factoring companies out there who have taken the time to analyse the risk of a candidate leaving their new job. I guess it can happen but will every client leave? Highly unlikely and as such a 70% prepayment seems acceptable – to lender and client alike.