Why funding is a critical tool for all recruitment agencies
Australian labour hire organisations often face the challenge of bridging a potential gap in cash flow during the time between when they need to pay candidate wages and when they receive client invoice payments. To help address this issue, leading recruitment software provider FastTrack has launched FastTrack Funding – a unique solution that allows firms to access cash when needed.
Solving your cash flow requirements
Integrated within FastTrack360, FastTrack Funding gives staffing firms the leverage to expand their recruitment and payroll functionalities all from within a single business platform. It provides a funding source to help you pay timesheets, invoices and payroll on time. Once your client pays an invoice, the system is repaid and the net difference is returned to you.
One of the other key benefits is that it enables you to perform credit checks on potential clients to help you make good decisions on whom you partner with.
CEO of FastTrack, David Page, said the new solution will allow hiring organisations to be smart in the way they grow.
“We are continually looking for new ways to support our customers on a daily basis. Our aim is to provide them with all the tools they need to focus on doing what they do best – providing great staff to their customers,” Mr Page said.
“The efficiencies this solution provides for business owners and operators is unparalleled in the market. It’s a tool for our customers to further differentiate themselves from their competitors, a tool to win market share and enhance profitability.”
“It’s a tool for our customers to further differentiate themselves from their competitors.”
FastTrack Funding a positive development
While this type of service is still relatively new to Australia, it is one that is commonly used in the UK market. There, business owners expand their operations without having to use their own money or a burdensome finance facility to fund the increased working capital.
FastTrack recognised the significant benefit this type of service could bring to the Australian market and partnered with APositive – a specialist finance provider to recruitment, contractor and labour hire organisations – to make FastTrack Funding happen.
A spokesperson for APositive said that “cash is king”, but not easy to keep hold of for business owners.
“Across all industries, the average invoice is paid 60+ days from invoice date. A business that is invoicing $500K a month on 30-day payment terms, needs $300 to 400K in cash to fund the gap between payroll and client payment,” they said.
“As you grow so does your cash requirement. The biggest hurdle for business owners growing the way they want is access to cash, and that’s what we provide.”
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