Funding options for businesses who manage contractors or a contingent workforce.

1. Payroll Funding – Cash Flow Funding
for the Recruitment Industry
18th September 2014

2. • International Growth of Contingent Workforce
• Stigma
• Reality
• Comparison of Funding Options
• Payroll Funding
• Practical Example
• Pricing
• Summary / Questions
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3. 3
• Industry leaders strongly suggest permanent
recruitment market is changing rapidly.
• Australians are embracing a contingent workforce
• Employers moving to use labour as a variable cost
• Workers are preferring contractor roles at a growing
rate.
• Outsourcing Contingent Workforce Management is
a growing trend for Employers.
• Opportunity to grow Contractor / Temp Book

4. 4
Negative perception of funding
and administrative burdens
associated with managing a
Temp Desk

5. 5
Back office support solutions for recruitment
businesses:
Online timesheeting
Online payroll systems
Contractor / Payroll Management outsourcing
Funding options:
Bank overdraft
Factoring / Debtor Finance
Payroll Funding

6. Payroll Funding Factoring Overdraft
Access to
Funding
Up to 100% of
invoice value
Usually 80% of
invoice value
Up to 80% of
property value
Security Invoices Invoices Property
Set up Fees No Yes Yes
Minimum
No Yes Yes
Volumes
Lock-in term No Yes Yes
Minimum Fees No Yes Yes
Integrate with
Yes No No
Systems

7. • Single Percentage fee (means transparent cost)
• Designated funding period according to payment cycle of
customers
• Selective use option – fee only charged when use
• Align funding requirement to operational cycle
• Integrate with systems & processes

8. Weekly cycle of timesheets, invoicing & payroll:
• Timesheets signed by Monday
• Invoices raised Tuesday
• Payroll paid Thursday
• Funding provided by Wednesday to meet payroll
commitment

9. Funding period chosen by Recruiter
Option to roll over unpaid invoices for further funding period
Scenario:
• TOP 14 days – customers generally pay on time
• 80% advance required to cover payroll
• 1%/14 days
• Rollover unpaid invoices @ 0.50%/7 days

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11. Payroll Funding
• $0 to set up
• Quick approval
• No lock-in
• Flexibility to use as needed
• Designed to fit operational cycle & systems

12. APositive Cashflow is a specialist payroll funding provider for the Recruitment
sector. APositive provide an industry tailored funding platform to help recruiters
meet their payroll obligations, as a stand-alone facility or integrated with back
office services that have been outsourced by the recruiter.
With 40+ years of combined business management & finance experience and 15+
years funding cash flow for SME’s, APositive have developed a sound
understanding of the burden on cash flow with managing a payroll.
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apositive.com.au