Explore Finance Options for Your Recruitment Agency

How to qualify for business loans as a recruitment agency

Qualifying for recruitment finance largely comes down to the type of credit you’re applying for. Different lines of credit will have different requirements, but as a general rule of thumb, here at Aurora Capital, we work with businesses that meet the following criteria:

• 6+ months trading history
• £100,000+ annual turnover
• UK based
• £10k – £5m funding requirements
• Positive credit history

If you have a low credit score or your recruitment agency is a startup and therefore doesn’t have an extensive history, this doesn’t necessarily mean that you won’t be eligible for secure business funding. We work with a range of lenders that provide finance to companies with adverse credit.

Making an application is the easiest way to find out if you can access a finance product, and at Aurora Capital, applications don’t have a negative impact on your credit score, so there’s all the more reason to submit an application and see what options are available to you.

How much can I borrow for my recruitment agency in the UK?

The amount you can borrow will depend on several factors, including your credit history, asset value, and the type of finance you choose.

Your credit history is one of the most important factors that 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. On the other hand, if you have a lower credit score, lenders may be more cautious about lending to you, and you may need to provide additional collateral or a guarantor to secure a loan.

Another factor that can impact how much you can borrow is the size of your business; Turnover and Profit. Many lenders will evaluate the strength of your business based on these 2 key metrics. Lenders will be more willing to lend if you have evidence that your business is growing and has the ability to repay the loan.

Finally, the type of finance you choose can also impact how much you can borrow. For example, if you choose a secured loan, you may be able to borrow more money than if you choose an unsecured loan. Similarly, 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.

How can Aurora Capital help my recruitment agency?

At Aurora Capital, we’re committed to helping recruitment agencies like yours grow and thrive, and there are several ways we can help you.

Wide Lender Network

As a broker with over 50+ commercial lenders in our network, we can offer you a wider range of finance options to suit your needs and help you achieve your goals. Our network of lenders includes many who are willing to work with companies that have poor credit histories or are 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

Applying for finance through Aurora Capital is quick and easy, taking just minutes to complete. We offer fast decisions, with many being made in just hours, not days, and if approved, the money can be available in just a few days. Best of all, applying through us won’t impact your credit score, so you can explore your options without any worry.

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 then match you with the lender that offers the best terms and most competitive rates for you.

What are some red flags that lenders look for when evaluating loan applications?

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. If your income is inconsistent or unreliable, it may be a red flag.
• Lack of collateral – If you’re applying for a secured loan, lenders will want to see that you have collateral to secure the loan. If you don’t have any, it may be a red flag that you’re a risky borrower.
• Poor business performance – Lenders may look at your business’s financial performance to determine whether you’re a good candidate for a loan. If your business is struggling or has a history of poor performance, it may be a red flag.

There are lenders that work with businesses with adverse credit histories, meaning that whilst there may be red flags, you might not necessarily get turned down. That being said, it’s useful to know what lenders look for so you can make your application as strong as possible and increase your chances of getting approved.

How can I improve my credit score before applying for finance?

• Check 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.
• Pay down debt – If you have high balances on credit cards or loans, paying them down can help improve your credit score.
• Make payments on time – Late payments can have a negative impact on your credit score. Make sure you’re making payments on time to avoid any penalties.
• Don’t apply for too much credit – Applying for multiple loans or lines of credit at once can lower your credit score. Only apply for credit when you need it.