Right Staff, a Cannock-based recruitment business specialising in providing temporary staff to the industrial, transport and logistics sectors, is aiming to meet its cashflow challenges and deliver funding for growth following the receipt of a tailored invoice finance facility from Optimum Finance.
Meeting payroll obligations on a weekly basis for temporary staff and having to wait two months to be paid by the client leaves a large hole in the cashflow that needs to be plugged. Now with the invoice finance, the business is now on a trajectory for growth.
Invoice finance is a method of cashflow funding that uses receivables (invoices) as the principal asset against which money can be raised. Optimum Finance pays Right Staff an agreed percentage of the invoice value as soon as it is submitted, driving access to liquidity at the point of invoice as opposed to needing to wait.
Luke Adamczyk and Cameron Santoro started Right Staff Recruitment six years ago. While it works with a number of Blue Chip clients, many of whom are household names, getting paid is still an issue.
Santoro said: “It’s the nature of temporary recruitment that we have to pay out before we get paid ourselves.
“Typically, temp staff are paid weekly, but we have to wait 60 days for the client to pay our invoice. That puts a huge pressure on cashflow and also stifles our ability to grow.”
Optimum Finance advances 85% of the invoice value with access to up to £500,000 at any one time, and this is a tremendous benefit in managing our cashflow. It is a facility that grows as the company grows.
Santoro added: “Previously, growth was hampered by simply not having the cash. But with invoice finance, the more business we generate, and the more invoices we raise, the more cash we can access. Optimum Finance has also been very supportive in increasing our facility when the business dictated it, and in addressing any concerns or issues we might have.”