One specialist healthcare, technology and finance recruiter, line when it comes to lending for recruiters supplying contractors through RPOs.

“RPOs often have low credit ratings and banks are concerned they may be lending more than once against a time sheet. This could result in SME recruiters not being able to secure lending against these accounts.”

RPOs Access to funding is one of the major issues facing SME (small and medium sized enterprises) recruitment agencies, according to a survey conducted by Recruiter.

Another recruiter was concerned about the actions of its bank. “Our bank wants to move us from overdraft to part overdraft and mostly loan, which is not how we want to finance the business.”

Getting paid promptly was also concern. “It seems the smaller you are the later people think they can pay you,” said one recruiter.
Another SME recruiter pointed to cash flow problems as the economy improved.

One recruiter was concerned about competition from large agencies. “Many of the nationals are able to win new business with clever PowerPoint presentations and appealing charge rates but then fail to deliver. Meanwhile, the customer returns to us and now wants the lower rate.”