On an average day, there are more than 90,000 job vacancies for social care roles alone. Furthermore, over 15% of all the jobs advertised in the UK are in the health and social work sectors. Consequently, care recruitment is a very busy and challenging sector. Care recruiters, therefore, need to make sure their processes and finances are streamlined to be successful and ensuring sufficient cashflow is a huge part of this.
The Problems With Care Recruitment
There is a huge demand for care workers. Already, over 1.45 million people work in social care. However, the government says a further 650,000 workers will need recruiting by 2035 in order to look after a growing ageing population.
Sadly, there are many staff shortages across the sector due to the poor working conditions. So much so that around 400,000 people leave the industry every year. While the government are planning a £3 million recruitment drive for the sector, many charities are sceptical of its success because they believe there needs to be fundamental reforms to the industry, such as higher wages and better management.
Another issue that can be a struggle for care recruitment is the extensive supplier networks and lengthy payment terms. When working with the public sector especially, there can be long payment terms which mean that recruiters may face cashflow pressures paying their suppliers while waiting for clients to pay them.
For recruiters to ensure they have the capacity to manage such an extensive recruitment drive, ensuring your cashflow is taken care of takes a weight off your mind.
Top Finance Solution For Care Recruitment
Due to the pressures of extended payment terms from clients and the demands of payment from your suppliers, GapCap often recommends Selective Invoice Finance as an alternative finance product.
Selective invoice finance is a financial solution where you are able to free up any cash that is tied up in outstanding invoices. Instead of waiting for lengthy payment terms from your clients, you can draw down the money that is in the invoice as quickly as you need it.
It works by onboarding debtors to the system and changing the bank details over to the lender account. Then, when you upload an invoice, the majority of the money from the invoice is quickly available in your account to drawdown. The lender will then manage the payment and remind the client for payment when necessary. When the invoice has been paid, the remainder of the invoice is available for you to drawdown, minus a small processing fee.
For care recruiters, selective invoice financing means that you can pay your suppliers, whether that is temporary staff, recruiters or advertising fees, when you need to, regardless of whether your clients have paid you. This keeps your recruitment process as agile as possible while meaning you can focus on the bigger picture and leave the lender in charge of managing, and where necessary chasing, your outstanding invoices.
To find out more about selective invoice finance by downloading your free pack today or speak with one of the advisors of GapCap by calling 0203 740 9710.