{"collectionById":{"d4a5b68c-8afd-4bbe-a7ac-e9a8422fedde":{"id":"d4a5b68c-8afd-4bbe-a7ac-e9a8422fedde","name":"Articles","fieldSchemas":[{"id":"0a981f8a-7dbb-440d-a940-25d9060c9b11","name":"Author Job Title","type":"plain_text"},{"id":"402ba26f-8f6d-4f5f-bf20-62e6549f4ad4","name":"Slug","type":"slug","role":"slug"},{"id":"df1c88d1-4bd8-4ecd-9059-463b9589de92","name":"Author Name","type":"plain_text"},{"id":"1f58afa6-2748-4188-b4a4-f1e54e37eca9","name":"Hero Image","type":"image"},{"id":"3084d9ba-ab55-4e5a-931b-b9db3d09105f","name":"Article Content","type":"rich_text"},{"id":"f2ba59b9-49cc-4ec6-9416-bda99d4c8383","name":"Title","type":"plain_text","role":"primary"}],"itemById":{"80345e24-6050-439b-9c3b-9e1690a6a5de":{"id":"80345e24-6050-439b-9c3b-9e1690a6a5de","index":"\"","collectionId":"d4a5b68c-8afd-4bbe-a7ac-e9a8422fedde","fields":[{"id":"4feaa61d-1c37-4162-948a-3818f68a9f02","value":"{\"root\":{\"children\":[{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"What recruitment factoring really costs agencies\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Recruitment factoring is often positioned as a way to improve cashflow by accessing revenue earlier, but many agencies only start considering it after something has already gone wrong. In The Recruitment Payment Gap Report (link), 21.3% of recruiters said they have reduced their fee simply to secure payment after the work has already been completed, while 35.3% said they have seen others do the same, which shows this is not an isolated issue but a widespread behaviour across the industry. That means revenue is not just delayed, it is actively reduced, which is often the moment agencies begin looking at funding options like factoring to avoid having to make that trade-off again. Factoring appears to offer a way to bring cash forward, but the actual cost is rarely understood upfront. You deliver a placement, raise an invoice and receive a percentage of that invoice value from a finance provider before your client pays, with the remaining balance released later minus fees, and what is less visible is how those fees accumulate over time and impact overall margin.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Factoring is not a one-off cost, it is a recurring charge applied to revenue you have already earned, which means the more you use it, the more margin you give away, and what starts as a short-term solution can quickly become a permanent cost embedded into the business.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Recruitment factoring fees, what you are charged and when\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"The cost of recruitment factoring is typically made up of multiple components rather than a single fee, including a service fee for managing the facility and a discount rate applied to each invoice you fund, which often increases the longer the invoice remains unpaid, meaning slower-paying clients directly increase the cost of financing. Additional charges can include setup fees, minimum usage requirements, credit control fees and sometimes penalties for early termination, and when combined, these costs create a consistent reduction in the value of every placement, which is why factoring should be evaluated based on total cost over time rather than headline rates.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Why factoring becomes more expensive as your business grows\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Factoring is often introduced to support growth, but it has the opposite effect over time. As placement volume increases, more invoices are funded, more fees are applied and a larger share of revenue is reduced before it reaches the business. Larger deals amplify this because higher invoice values increase absolute costs, while longer client payment cycles extend how long those fees are applied.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"The result is that growth increases cost, not stability. Instead of strengthening the business, more revenue is exposed to financing fees and dependency increases, which means the business becomes more reliant on factoring at the exact point it should be improving its financial position.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"How recruitment factoring impacts profit and margin\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"The most significant impact of recruitment factoring is not the immediate fee, but the long-term effect on profitability, because every invoice funded reduces the total revenue retained by the agency and over time this compounds across the business. Agencies may find themselves placing more candidates and generating more revenue while keeping less of what they earn, and because the cost is spread across multiple invoices rather than appearing as a single line item, it often goes unnoticed until margins begin to tighten. The broader financial impact of delayed payment and margin erosion is explored in \",\"type\":\"text\",\"version\":1},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"The True Cost of Unpaid Recruitment Invoices\",\"type\":\"text\",\"version\":1},{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\" \",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"link\",\"version\":1,\"rel\":\"noreferrer\",\"target\":null,\"title\":null,\"url\":\"https://www.auxpay.io/articles/unpaid-recruitment-invoices\"}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":1,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Why factoring does not fix recruitment cashflow problems\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Factoring provides earlier access to cash, but it does not change when clients actually pay, which means the underlying payment structure remains the same and the business continues to operate within a delayed payment model. Instead of fixing the cause of the issue, factoring allows agencies to work around it by selling a portion of their future revenue, which is why many businesses continue to experience cashflow pressure even after adopting it. This is closely linked to how payment terms are structured in the first place, which is covered in \",\"type\":\"text\",\"version\":1},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Recruitment Payment Terms: How Agencies Reduce Payment Risk\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"link\",\"version\":1,\"rel\":\"noreferrer\",\"target\":null,\"title\":null,\"url\":\"https://www.auxpay.io/articles/recruitment-payment-terms\"}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":1,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Recruitment factoring vs recruitment invoice finance, what is the difference\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Recruitment factoring and recruitment invoice finance are often used interchangeably, but there are differences in how they operate, particularly around control of collections, as factoring providers typically manage payment collection directly with your clients while invoice finance arrangements may allow agencies to retain that control depending on the structure. Despite these differences, the core principle remains the same, both involve accessing cash early in exchange for a fee, and both operate within the same delayed payment model. For a deeper comparison and alternative approach, see \",\"type\":\"text\",\"version\":1},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Recruitment Invoice Finance vs Structured Payment Terms\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"link\",\"version\":1,\"rel\":\"noreferrer\",\"target\":null,\"title\":null,\"url\":\"https://www.auxpay.io/articles/recruitment-invoice-finance-alternatives\"}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":1,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"The hidden risks of relying on recruitment factoring\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Beyond cost, factoring introduces operational and commercial risks that are often overlooked, including the potential impact on client relationships when third parties are involved in payment collection and contractual obligations that limit flexibility, such as minimum volumes or long-term agreements. Over time, reliance on factoring can become embedded in the business model, making it difficult to step away without creating financial pressure, which turns what was intended as a short-term solution into a long-term dependency.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"What recruitment agencies actually do instead of factoring\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"When factoring becomes expensive or restrictive, most recruitment agencies do not immediately change how they structure payments, they look for alternative ways to bring cash into the business to relieve short-term pressure. This often includes taking out business loans, using overdrafts, accessing invoice finance products or introducing short-term cashflow facilities to cover the gap between placements and payment, while some agencies also reduce their fees to secure faster payment or shift their focus toward clients who are known to pay quickly, even if those roles are less commercially valuable. The issue is that all of these approaches treat the symptom rather than the cause, they provide access to cash but do not change when or how payment is made, which means the business continues to operate within the same delayed payment model, with the same risks and the same dependency on external funding sitting underneath it. Over time, this creates a cycle where growth increases the need for financing rather than reducing it.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"The agencies that move away from this cycle take a different approach. Instead of funding invoices after the work is complete, they focus on how payment is structured before delivery begins by agreeing clearer payment schedules, introducing staged payments and setting defined expectations around when cash will be received. This shifts the focus from accessing cash after the fact to reducing the need for funding altogether.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"A better way to protect margin and cashflow\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"heading\",\"version\":1,\"tag\":\"h2\"},{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"The most effective way to reduce reliance on factoring is to address the point where risk is introduced, rather than funding invoices after the fact. Recruitment businesses are highly effective at securing placements, but less structured when it comes to securing payment, and this is where many of these issues begin. \",\"type\":\"text\",\"version\":1},{\"detail\":0,\"format\":1,\"mode\":\"normal\",\"style\":\"\",\"text\":\"AuxPay by Auxeris\",\"type\":\"text\",\"version\":1},{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\" helps recruitment agencies structure payments upfront, automate collections and reduce reliance on invoice financing or factoring, with accounts free to set up so businesses can improve cashflow without reducing margin or adding complexity.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[{\"children\":[{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\"Open your free AuxPay account\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"link\",\"version\":1,\"rel\":\"noreferrer\",\"target\":null,\"title\":null,\"url\":\"http://app.production.auxeris.io/signup\"},{\"detail\":0,\"format\":0,\"mode\":\"normal\",\"style\":\"\",\"text\":\" and structure how you get paid before the invoice is even raised.\",\"type\":\"text\",\"version\":1}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"},{\"children\":[],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"paragraph\",\"version\":1,\"textFormat\":0,\"textStyle\":\"\"}],\"direction\":\"ltr\",\"format\":\"\",\"indent\":0,\"type\":\"root\",\"version\":1}}","itemId":"80345e24-6050-439b-9c3b-9e1690a6a5de","fieldSchemaId":"3084d9ba-ab55-4e5a-931b-b9db3d09105f"},{"id":"0cdbedbc-7d32-411c-921b-6e5aedf350b2","value":"Recruitment Factoring Costs Explained, What Agencies Actually Pay","itemId":"80345e24-6050-439b-9c3b-9e1690a6a5de","fieldSchemaId":"f2ba59b9-49cc-4ec6-9416-bda99d4c8383"},{"id":"b2eeb02d-3312-4b93-830d-9027a2d69c28","value":"{\"image\":\"b6cf1970f7671c0699fc3125361634e5d3fa9dfd\",\"imageThumbnail\":\"50687c7e4da0caf14e372e102c61d77b97ce0d04\",\"originalImageHeight\":2160,\"originalImageWidth\":3840,\"altText\":\"Male looking at a laptop screen in an office environment studying data\",\"fileName\":\"Recruitment Factoring Costs Explained - AuxPay by Auxeris.png\"}","itemId":"80345e24-6050-439b-9c3b-9e1690a6a5de","fieldSchemaId":"1f58afa6-2748-4188-b4a4-f1e54e37eca9"},{"id":"868bdae1-671d-4a72-893e-bfe63035bbb8","value":"Account Director","itemId":"80345e24-6050-439b-9c3b-9e1690a6a5de","fieldSchemaId":"0a981f8a-7dbb-440d-a940-25d9060c9b11"},{"id":"290c85f9-03c2-4f91-937c-e76c4bcff1e3","value":"Nicola Webster-Hart","itemId":"80345e24-6050-439b-9c3b-9e1690a6a5de","fieldSchemaId":"df1c88d1-4bd8-4ecd-9059-463b9589de92"}]}}}},"slugByItemId":{"d38bc66e-898e-469d-a28e-7e25efcd5e82":"recruitment-payment-terms","54d55d03-8f64-4a4e-94a6-397cf873c405":"unpaid-recruitment-invoices","d62e1d23-4e65-4b8a-9cd4-4c517a076802":"finance-for-recruitment-agencies","2bdbaeea-18f5-4973-975d-379c73beaab4":"why-growing-recruitment-agencies-run-out-of-cash","e893ce81-635b-48b0-bd01-c3f39aa1c453":"why-clients-delay-paying-recruitment-fees","80345e24-6050-439b-9c3b-9e1690a6a5de":"recruitment-factoring","7c10a08b-d604-4d4d-a009-2400c53b6b59":"recruitment-invoice-finance-alternatives","37c24dae-a321-4813-9830-76f3d4391adc":"recruitment-tech-stack-revenue-risk","f3fd991a-9a2e-4c2e-b84c-f7c45481e926":"starting-a-recruitment-business-payment-infrastructure"}}