RLC Manchester - Joe Carroll, HSBC

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RLC Manchester - Joe Carroll, HSBC

  1. 1. Recruitment - Embracing the Upturn Joe Carroll Client Manager HSBC Invoice Finance (UK) Ltd PUBLIC
  2. 2. 2 Contents  The market context  The growth opportunity  The financing options  The resources available  Some real life examples PUBLIC
  3. 3. 3 PUBLIC The market context
  4. 4. 4 PUBLIC The growth opportunity (UK)
  5. 5. 5 PUBLIC The growth opportunity (International) GDP growth %forecast: selected major economies 2014 2015 UK 2.9 2.5 USA 2.5 2.5 Eurozone 0.9 1.1 Germany 1.7 1.7 France 0.6 1.0 Italy 0.4 0.6 Spain 0.7 1.1 Japan 1.0 1.0 Source: HSBC Economics (March 2014) Global trade by sector for the UK (2014-30) Growth (% year) 7 6 5 4 3 2 1 0 Exports Imports High-tech goods Total Total imports and exports are the sum of imports and exports from the modelled countries
  6. 6. 6 PUBLIC Source: Deloitte /APSCo Recruitment Index 2013 The growth opportunity (International)
  7. 7. 7 The financing need…… and the risks PUBLIC Staff Supplied Salary Paid Payment due Payment received? Day 7 Day 30 Day …..Day 1 Increased pressure on Credit Terms Increased pressure on Margins
  8. 8. 8 PUBLIC The financing need……. and the risks Increased company insolvency – Q1 2014
  9. 9. 9 The financing options PUBLIC Structured Unstructured Grows with business Requires renegotiation Less security required Capital assets as security More flexible Less flexible Self liquidating Higher collateral demands More favourable cost Receivables (Invoice) Finance Used by 43,500 UK businesses* in UK £250bn of client turnover* Disclosed (Factoring) or Undisclosed (Invoice Discounting) UK and Export Professional Credit Management Credit Protection  Recruitment is a key sector for our business  We fund, collect, protect  Over 50 years experience  Unrivalled global reach  Funding available in every internationally traded currency  QiCM accredited  SME Fund 2014 *Asset Based Finance Association, 2013 statistics
  10. 10. 10 Who can help? PUBLIC
  11. 11. 11 Some recruitment sector businesses HSBC is proud to support PUBLIC • International specialist staffing group with operations across the globe • Relationship with HSBC Invoice Finance for over 10 years • £13m Receivables Finance funding line • Funding against invoices for temporary and permanent placements • Provides Empresaria Group with the additional working capital to support continuing sales growth • One of the North East of England's leading privately-owned multi-disciplinary agencies. • Over 15 years with HSBC • £3m funding facility supporting UK and Export sales • Credit Protection provided to guard against bad debt • Flexible working capital facility • £30 million turnover recruitment business focused on the Automotive Industry • 15 year HSBC relationship • GBP £3m RF facility with $2m RF facility for their US operations. • Facility helps support continued sales growth into new markets, particularly China.
  12. 12. 12 Summary  The UK recruitment industry is poised to take advantage of the upturn in economic conditions  Opportunities exist in both UK and international markets  Growth brings with it a need for working capital  However, embracing the upturn is not without its risks  Structured funding solutions such as receivables finance offer significant advantages and risk mitigation  Help and expertise is available through a range of trusted advisors PUBLIC
  13. 13. 13 Thank you PUBLIC

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