Recruiters Case Study
Staffing Firm Employs The Right Solution
Founded in 1993, Prime Staff is a fast growing staffing consultancy that provides temporary staff for the construction, industrial, engineering and commercial sectors.
Prime Staff found that the inherent problems experienced by the staffing industry are exaggerated by the inflexibility of banks to provide higher levels of funding to staffing firms.
Prime Staff’s CEO Daniel McIntyre explains, “Cash flow is always a major strategic challenge for staffing companies. We pay our temporary workers weekly but cannot bill our customers until the end of the month and then we have to wait at least 30 days for payment, so cash flow problems are inevitable.
“We looked at a number of finance options before our accountants recommended receivables funding. Bibby Financial Services impressed us with their commercial awareness and understanding of our industry and we opted for a facility with them. 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 receivables funding 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 the wages. The collection service allows the company to focus on its core skill of placing people in jobs while Bibby ensures that payment is received.
Daniel adds, “Receivables funding is now incorporated into our long-term business strategy. Our relationship with Bibby Financial Services has allowed us to plan to launch three new offices and double turnover in the next five years. Bibby is fully supportive of our plans to expand and we are on target to meet our goals.”
