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Recruitment company benefits from invoice discounting

Category: Invoice Discounting — Paul Morgan on October 12, 2013

A specialist construction industry recruitment firm has boosted its position thanks to new levels of commercial finance.

Number 8, an agency which supplies construction and demolition workers for projects in Scotland and throughout the world, was created just five years ago.

The firm, which was partly the brainchild of former All Blacks skipper Zinzan Brooke, has seen notable growth in New Zealand.

Devastated by recent earthquakes, the country’s demand for construction workers has significantly outstripped supply.

With turnover increasing, the new invoice discounting facility will help the group to underpin its development and expand even further.

The next step for the firm is to create a specialised department which focuses on temporary recruitment. Targeted at the demolition sector in particular, it is planned to complement the permanent recruitment of workers.

The need for invoice discounting was seen as critical for the company because of the way it operates.

While the staff members it places in positions are paid on a weekly basis, Number 8 does not receive payment under the same terms. Instead, payment terms with the clients can extend for weeks and months.

The company’s managing director, Trevor Mills, said that because hundreds of the firm’s temporary workers are paid on weekly basis, a reliable cash flow is essential.

Highlighting the fact that without the invoice finance facility the firm simply would not be able to pay its workers on time, he went on to say it would essentially hinder the growth of the company.

Currently placing around 500 people into work each week, the firm’s 2012 turnover hit £12 million, with 2013 forecasts predicting further improvement.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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