Your people are your lifeblood, which is why it’s important they are not left waiting for payment because you are waiting to be paid by your customers. Back office and payroll finance is an ideal solution to help in this situation.
What is back office and payroll finance?
Back office and payroll finance for recruiters is a fully outsourced single solution made up of a comprehensive payroll management service, a factoring facility and a credit insurance policy.
In practice, it takes care of all the key administrative tasks involved with ensuring temps are paid correctly, and on time, whilst also ensuring your compliance with tax and data protection legislation. Freeing up your time to focus on growing your business.
An overview of the back office and payroll finance service
- Payroll management (weekly/monthly payroll calculation, payslip/remittance advice production, new starter set-up, leavers’ P45s, year-end P60s and P35, data archiving, Inland Revenue liaison)
- Payments directly to temporary staff and contractors by BACS each week (or monthly)
- Payment to Inland Revenue each month in respect of tax deducted and employers’ and employees’ National Insurance contributions
- Holiday pay management
- Invoice production, matching with timesheets, and mailing to your clients
- Debtor protection cover (subject to insurer’s limits) is included in our fee
- Credit checks
- Payments of profit margin by CHAPS (free of charge) on Thursday of each week
- Calculation and management of output VAT reserve on the invoices we raise
- Payment of VAT reserve value to you when payment to HMRC falls due
- Sales ledger management (input of invoices, credit notes, banking and input of cash received, ledger reconciliations, production and dispatch of statements and letters)
- Credit control (telephone chasing and dispatch of collection letters)
- The cost of funds advanced is included (i.e. there is no separate interest charge) in our fee
- A single fee, expressed as a percentage of your sales, pays for all our services. There are no minimum charges or hidden additional costs.
Is it suitable for my business?
Back office and payroll finance services are suited to temporary recruitment companies of all sizes.
The provision of credit or leasing services by us is subject to your meeting our Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.