Explore Finance Options for Your Recruitment Agency
Looking to grow your recruitment agency? Find out more about all the types of recruitment finance available through Aurora Capital to help your agency reach its fullest potential.
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from 6.90%
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£100,000 +
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£5k - £500k
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About Recruitment Finance
Types of finance options available to recruitment agencies
Getting the right finance for your recruitment agency is essential if you’re looking to manage cash flow, fund growth, and stay competitive.
With long client payment cycles and upfront wage costs, having access to flexible funding solutions can help your agency cover expenses, invest in new staff, and scale operations effectively.
Several funding types are available, each catering to different financial needs. Understanding your options can help you choose the right type for your agency.
Invoice finance
Invoice finance can help recruitment agencies bridge cash flow gaps caused by long payment terms. This ensures you can pay staff and cover operational costs without waiting for invoices to clear.
This type of finance allows you to release cash tied up in unpaid invoices by advancing a percentage of the invoice value upfront. Instead of waiting 30, 60, or even 90 days for clients to pay, you can access funds almost immediately.
Lenders typically advance up to 90% of the invoice value, with the remaining balance paid once the client settles the invoice, minus a small fee. This funding grows alongside your agency’s invoice volume, making it a scalable and flexible solution for cash flow management.
Unsecured business loans
Unsecured business loans provide recruitment agencies with access to finance without requiring collateral. They can be used for various purposes, including marketing campaigns, investing in new recruitment software, or covering short-term expenses without tying up business assets.
Because lenders take on more risk with unsecured loans, interest rates are generally higher, and borrowing limits may be lower than secured finance. However, businesses with strong revenue and a good credit history can often access competitive terms.
Some lenders may require a personal guarantee, making directors personally liable if the business is unable to repay the loan. Unsecured loans are best suited for agencies that need quick funding and have a proven track record of stable revenue.
Revolving credit facility
A revolving credit facility, similar to an overdraft, offers recruitment agencies flexible access to funding that can be used as needed. This type of finance is useful for managing fluctuating cash flow, covering unexpected costs, or financing short-term expenses without committing to a fixed loan.
You can borrow, repay, and reuse funds within an agreed credit limit. The amount available reduces as funds are drawn but is restored once repayments are made. Interest is only charged on the amount used, making it a cost-effective way to manage cash flow.
Revolving credit is helpful if your agency experiences seasonal demand changes, delayed client payments, or unpredictable expenses.
Asset finance
Asset finance enables recruitment agencies to purchase or lease equipment and spread the cost over time. This could be a good option if you’re investing in IT infrastructure, office furniture, company vehicles, or recruitment software.
Rather than making a large upfront payment, you can use asset finance to buy the assets you need while maintaining a healthy cash flow.
The equipment itself serves as collateral, which can result in lower interest rates compared to unsecured loans. Depending on lender criteria, both new and second-hand assets can be financed.
How to use recruitment finance to grow your agency
Taking out finance or credit can be daunting, especially if it is high value. However, it is sometimes required to help take your business to the next level.
There are several ways in which using external finance can facilitate the growth of your recruitment agency, including:
Expanding your workforce
One of the most significant ways agencies can use recruitment finance is by hiring more staff and expanding your team.
With more employees, your agency can take on more clients and expand its business offerings. This could include bringing on specialists to help with candidate sourcing, marketing, or account management.
Investing in high-quality staff allows your recruitment agency to improve its services and attract more business.
Improve cash flow
Recruitment agencies can have notoriously long payment periods, where you do not receive payment for 60 or even 90 days.
Invoice finance is an excellent way to navigate this financial limbo because it enables you to release and use the capital locked in unpaid invoices.
It allows you to cover wages and manage operational costs without disruption and ensures steady cash flow, reducing the need for overdrafts or expensive short-term borrowing.
If your agency’s income fluctuates, a revolving credit facility can also serve as a flexible buffer, providing access to funds when needed and allowing repayments as revenue comes in.
Upgrade systems and technology
Investing in modern recruitment technology can streamline operations, improve candidate sourcing, and enhance client experience. The right software can automate administrative tasks, improve database management, and provide insights for better hiring decisions.
Finance can be used to upgrade applicant tracking systems, invest in new recruitment tools, or implement CRM systems that help agencies manage client relationships more effectively.
Leasing or financing these upgrades spreads the cost over time, ensuring your agency can access the latest technology without a significant upfront investment. Upgrading IT infrastructure can also improve security and compliance, reducing GDPR and data management risks.
Move premises
Moving to a larger office or opening a new location as your agency grows can help accommodate a growing team and attract new clients. A well-equipped office in a strategic location can boost brand perception and provide a better experience for candidates.
Secured business loans or asset finance can fund office expansion, renovations, or relocations, making it easier for your agency to scale operations. Investing in a professional workspace can also improve staff retention, creating a more productive and collaborative work environment.
Choosing the right finance solution for your recruitment agency depends on your needs, financial situation, and future plans. Think about what you need funding for to work out which option could work best for your agency:
- Managing cash flow: Invoice finance allows you to unlock funds from unpaid invoices, ensuring you can pay staff and cover operational costs without waiting for client payments.
- Long-term investments: Unsecured business loans provide larger lump sums for office expansion, hiring new staff, or upgrading technology.
- Buying assets: Asset finance can help you purchase essential equipment, like IT systems or company vehicles, without significant upfront costs.
- Flexible access to funds: A revolving credit facility acts like an overdraft, providing short-term funding that can be used and repaid as needed.
Whatever your reasons for wanting funding, Aurora Capital can help you find the right solution. Speak to us about your growth plans and learn more about our funding solutions today.
Whether your agency qualifies for recruitment finance primarily depends on the type of credit you’re applying for.
Different borrowing options have different requirements. At Aurora Capital, we work with businesses that meet the following criteria:
- 6+ months of trading history
- £100,000+ annual turnover
- Based in the UK
- £10k – £5m funding requirements
- Positive credit history
If you have a low credit score or your recruitment agency is a startup with no extensive history, this doesn’t mean you won’t be eligible for business funding. We work with various lenders that provide finance to companies with adverse credit.
Making an application is the easiest way to determine if you’re eligible for finance. Applying with Aurora Capital won’t have a negative impact on your credit score, so there’s no risk in submitting an application to see what options are available to you.
The amount you can borrow will depend on several factors, including your credit history, asset value, and the type of finance you choose.
- Credit score: This is one of the most important factors lenders consider when deciding how much to lend you. If you have a good credit score, you are more likely to be approved for larger loans with better interest rates.
- Business size: Many lenders will evaluate the strength of your business based on your turnover and profit. Lenders will be more willing to lend if you can show your business is growing and can repay the loan.
- Type of finance: Each option can have different borrowing limits. For example, a secured loan could allow you to borrow more money than an unsecured loan. If you choose invoice finance, the amount you can borrow will depend on the value of your outstanding invoices.
At Aurora Capital, we understand that every recruitment agency is different, and we work with our clients to find the finance solution that best meets their needs.
Whether you need to borrow a small amount to cover short-term expenses or a larger amount to fund expansion, we can help you find the right finance solution for your recruitment agency.
We’re committed to helping recruitment agencies like yours grow and thrive. Here’s why you should choose Aurora Capital for your recruitment finance.
Wide lender network
We have over 50 commercial lenders in our network, which means we can offer you a wider range of finance options to suit your needs and help you achieve your goals.
Our network includes lenders willing to work with companies with poor credit histories or just starting out. This means that even if you’ve been turned down for finance in the past, we may still be able to help.
Quick loan application
Our application process is quick and easy; taking just minutes to complete. We provide quick decisions, with many approvals granted within hours rather than days, ensuring you get the funding you need without delays.
Once approved, funds can be transferred to your account in just a few days, helping you move forward with your plans as soon as possible. Most importantly, applying with us does not impact your credit score, so that you can explore your finance options confidently and without risk.
Personalised service
Whether you need finance to cover day-to-day expenses, invest in new technology, or expand your team, we can help you find the right solution.
Our team of experienced brokers will work with you to understand your business and financial needs and match you with the lender that offers the best terms and most competitive rates.
Choosing the right finance solution for your recruitment agency depends on your needs, financial situation, and future plans. Think about what you need funding for to work out which option could work best for your agency:
- Managing cash flow: Invoice finance allows you to unlock funds from unpaid invoices, ensuring you can pay staff and cover operational costs without waiting for client payments.
- Long-term investments: Unsecured business loans provide larger lump sums for office expansion, hiring new staff, or upgrading technology.
- Buying assets: Asset finance can help you purchase essential equipment, like IT systems or company vehicles, without significant upfront costs.
- Flexible access to funds: A revolving credit facility acts like an overdraft, providing short-term funding that can be used and repaid as needed.
Whatever your reasons for wanting funding, Aurora Capital can help you find the right solution. Speak to us about your growth plans and learn more about our funding solutions today.
Whether your agency qualifies for recruitment finance primarily depends on the type of credit you’re applying for.
Different borrowing options have different requirements. At Aurora Capital, we work with businesses that meet the following criteria:
- 6+ months of trading history
- £100,000+ annual turnover
- Based in the UK
- £10k – £5m funding requirements
- Positive credit history
If you have a low credit score or your recruitment agency is a startup with no extensive history, this doesn’t mean you won’t be eligible for business funding. We work with various lenders that provide finance to companies with adverse credit.
Making an application is the easiest way to determine if you’re eligible for finance. Applying with Aurora Capital won’t have a negative impact on your credit score, so there’s no risk in submitting an application to see what options are available to you.
The amount you can borrow will depend on several factors, including your credit history, asset value, and the type of finance you choose.
- Credit score: This is one of the most important factors lenders consider when deciding how much to lend you. If you have a good credit score, you are more likely to be approved for larger loans with better interest rates.
- Business size: Many lenders will evaluate the strength of your business based on your turnover and profit. Lenders will be more willing to lend if you can show your business is growing and can repay the loan.
- Type of finance: Each option can have different borrowing limits. For example, a secured loan could allow you to borrow more money than an unsecured loan. If you choose invoice finance, the amount you can borrow will depend on the value of your outstanding invoices.
At Aurora Capital, we understand that every recruitment agency is different, and we work with our clients to find the finance solution that best meets their needs.
Whether you need to borrow a small amount to cover short-term expenses or a larger amount to fund expansion, we can help you find the right finance solution for your recruitment agency.
We’re committed to helping recruitment agencies like yours grow and thrive. Here’s why you should choose Aurora Capital for your recruitment finance.
Wide lender network
We have over 50 commercial lenders in our network, which means we can offer you a wider range of finance options to suit your needs and help you achieve your goals.
Our network includes lenders willing to work with companies with poor credit histories or just starting out. This means that even if you’ve been turned down for finance in the past, we may still be able to help.
Quick loan application
Our application process is quick and easy; taking just minutes to complete. We provide quick decisions, with many approvals granted within hours rather than days, ensuring you get the funding you need without delays.
Once approved, funds can be transferred to your account in just a few days, helping you move forward with your plans as soon as possible. Most importantly, applying with us does not impact your credit score, so that you can explore your finance options confidently and without risk.
Personalised service
Whether you need finance to cover day-to-day expenses, invest in new technology, or expand your team, we can help you find the right solution.
Our team of experienced brokers will work with you to understand your business and financial needs and match you with the lender that offers the best terms and most competitive rates.
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obligation quote Today!
- Apply in minutes
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Securing business funding:
How it works
We understand that timing is key when you’re looking to find funding options for your business,so our process is as quick and as streamlined as possible.
1
Apply Online in minutes
We cater to any sized business, so to apply for business funding, we only need you to share basic information about your company. Your application will take a few minutes, and our experts are always happy to assist with any questions you have about specific loan types or alternative finance options.
2
Get Matched in hours
Our LendTech technology will compare our trusted panel of lenders and match you with your most suitable finance option. Each business funding option is different, and we’ll help to make sure you’re fully clued up on the terms and conditions as well as indicative repayment details.
3
Get Funded in days
One of our funding specialists will discuss the available options with you and guide you through the process from application to approval. Once approved, the funds can be deposited in a matter of hours.
Prefer to talk? Call us on 01371 870815
4.9/5 based on 100+ by happy customers
Navigate our range of business
funding options to find out more
We understand that timing is key when you’re looking to find funding options for your business, so our process is as quick and as streamlined as possible.
Apply for a recovery loan to help your business employ staff
A government backed loan to support businesses affected by the pandemic.
Looking to obtain an unsecured loan for your business?
Business loans up to £500k, without the need to secure on property or assets.
Apply for a secured business loan today and get matched with a lender…
Business loans up to £2M, secured against a UK property by way of 1st or 2nd charge.
It takes minutes to apply, there’s no effect on your credit score.
Acquire new or used equipment, machinery or vehicles and spread the repayments over 1-6 years.
Compare merchant cash advances to help your business purchase stock.
Borrow up to 2x your monthly card sales and repay through a small % of your future takings.
Compare revolving credit facilities to help your business grow.
A pre agreed credit facility, allowing you to dip in and out for future funding requirements.
Spread the payments of your PAYE, VAT or Corp Tax bills.
VAT/TAX loans up to £500k for PAYE payments, quarterly VAT payments or annual Corporation tax payments
Prefer to talk? Call us on 01371 870815
4.9/5 based on 100+ by happy customers
Key benefits of working with
Aurora Capital
LendTech Technology - Access to 50+ Lenders
At Aurora Capital, we use LendTech technology which gives us access to a vast network of over 50 commercial lenders in the market. Our extensive pool of lenders ensures that we can match you with the most appropriate lender for your specific requirements, who will provide competitive terms and reasonable loan options.
Apply Online in Minutes & Get Funding in Days
We understand that businesses often need funding quickly. For this reason, we offer a fast, simplified service. Once you’ve chosen the appropriate loan for your needs, you can apply online through Aurora Capital, which only takes a few minutes. Our team will then match you with a lender and acquire the necessary funds, often in just a few days.
No Effect on Your Credit Score
Conventional loan and credit applications can damage your credit score, but with Aurora Capital, this isn’t the case. Whether your application is successful or declined, your credit score remains unaffected. This is especially advantageous for newly established businesses trying to establish a credit score, or those with a negative credit history.
LendTech Technology - Access to 50+ Lenders
At Aurora Capital, we use LendTech technology which gives us access to a vast network of over 50 commercial lenders in the market. Our extensive pool of lenders ensures that we can match you with the most appropriate lender for your specific requirements, who will provide competitive terms and reasonable loan options.
Apply Online in Minutes & Get Funding in Days
We understand that businesses often need funding quickly. For this reason, we offer a fast, simplified service. Once you’ve chosen the appropriate loan for your needs, you can apply online through Aurora Capital, which only takes a few minutes. Our team will then match you with a lender and acquire the necessary funds, often in just a few days.
No Effect on Your Credit Score
Conventional loan and credit applications can damage your credit score, but with Aurora Capital, this isn’t the case. Whether your application is successful or declined, your credit score remains unaffected. This is especially advantageous for newly established businesses trying to establish a credit score, or those with a negative credit history.
100+ Happy Customers & Counting
Recruitment agency finance: FAQs
Before you apply for credit, it’s important to understand what lenders look for when evaluating loan applications. Here are some common red flags that lenders may look for:
- Poor credit score: Lenders will typically check your credit score to determine your creditworthiness. If your score is low, it may be a red flag that you’re a risky borrower.
- High debt-to-income ratio: This is the amount of debt you have compared to your income. If your ratio is too high, it may indicate that you’re overextended and may struggle to repay the loan.
- Inconsistent income: Lenders want to see a stable income that can support loan repayments. It may be a red flag if your income is inconsistent or unreliable.
- Trading time: Some lenders require you to be trading for a certain amount of time, so this is something to consider if you are a newly established business.
- Poor business performance: Lenders may look at your business’s financial performance to determine whether you’re a good candidate for a loan. It may be a red flag if your business is struggling or has a history of poor performance.
Some lenders work with businesses with adverse credit histories, meaning that whilst there may be red flags, you might not necessarily be turned down.
However, it’s still helpful to understand what lenders look for so you can make your application as strong as possible and increase your chances of getting approved.
Yes, some lenders are willing to fund businesses with poor credit histories. While a low credit score may limit the options available or result in higher interest rates, finance is still available.
Invoice finance is often a viable option since funding is based on the value of unpaid invoices rather than credit history. Secured loans may also be available if you can provide valuable assets as collateral.
Some lenders may require a personal guarantee to offset risk. Improving your credit score before applying can help secure better terms, but bad credit doesn’t necessarily mean finance is out of reach.
Here are a few ways you can look to boost your credit score before you start an application, including:
- Checking your credit report: Make sure your credit report is accurate and up-to-date. If you notice any errors, dispute them and get them resolved.
- Paying down debt: If you have high balances on credit cards or loans, paying them down can help improve your credit score.
- Making payments on time: Late payments can negatively impact your credit score. Always pay on time and in full to avoid any penalties.
- Not applying for too much credit: Applying for several loans or lines of credit at once can lower your credit score. Only apply for credit when you need it, and wait at least three months between applications.
Even new recruitment agencies can access finance, though options may be more limited. Unsecured business loans and invoice finance are often available for startups with a strong business plan and healthy revenue projections.
Some lenders may require a personal guarantee or a higher interest rate for newer businesses. You may qualify for more competitive finance options if your agency has been trading for at least six months and meets turnover requirements.
