Name: Jobs 4 U
Industry: Recruitment
Turnover: £100k +
“We were immediately impressed with Bibby Financial Services’ track record in helping recruitment firms such as ours,” explains Dorota. “We opted for a invoice finance facility which releases a percentage of our invoices as they are raised providing an ongoing supply of cash linked to our sales and then Bibby Financial Services chases any outstanding customer invoices, paying us the balance less the service fee.”
The Problem
Taking the plunge and deciding to set up in business on your own is one of the most exciting and challenging things you can do. However, when you are not from the country and are faced with a turbulent economy, it can be even trickier.
This was the situation for Polish national Dorota Arsian who decided to up sticks and move after Poland joined the European Union in 2004. An experienced recruitment professional, she opted to take the leap into the unknown and set up recruitment firm ‘Jobs 4 U’ with her business partner and fellow Pole, Kasia Boruc, specialising in providing temporary workers for the industrial, distribution and commercial sectors.
The pair recognised very early on that a flexible finance solution would be required to smooth the flow of cash into the business which requires temporary workers to be paid on a weekly basis but then waiting for clients to pay which can be 30 days plus.
The Solution
Dorota explains: “From our experience working in recruitment businesses in Poland we knew that cash flow problems are part and parcel of our industry. In an ideal world, our payment terms would be 14 days but we knew full well that in reality it would be more like 21-30 days with some clients needing to be chased after the 30 days. This is when we decided that an ongoing flexible funding solution to bridge the gap between paying our temps and receiving payment from our clients was needed.”
With little knowledge of the finance options available, the pair researched funding options on the internet and invoice finance stood out as the ideal solution, releasing the value of invoices as they are raised and providing an immediate cash flow injection to pay temporary workers as and when required. When it came to seeking an invoice finance provider, Bibby Financial Services was selected on its competitive fees and extensive experience of the recruitment industry.
Working with Bibby Financial Services
“We were immediately impressed with Bibby Financial Services’ track record in helping recruitment firms such as ours,” explains Dorota. “We opted for a invoice finance facility which releases a percentage of our invoices as they are raised providing an ongoing supply of cash linked to our sales and then Bibby Financial Services chases any outstanding customer invoices, paying us the balance less the service fee.”
However, just as the two were setting the wheels in motion to launch the business and getting their funding in place, Kasia made the decision to go back to live in Poland temporarily to give birth to her first baby and take maternity leave in her home town.
With legal papers still needing to be signed in order to get the business up and running, this could have proved problematic but Bibby Financial Services was able to help by utilising the services of its company in the Polish capital. While on maternity leave, Kasia has been able to go to the offices of Bibby Financial Services Poland in Warsaw to sign all the necessary legal documentation for Jobs 4 U.
Dorota comments: “The fact that Bibby Financial Services has a Polish office was really the icing on the cake for us ensuring that our business could get off the starting block despite the fact that one half of our business partnership wasn’t in the country.”
“Given the unprecedented economic conditions, it is not surprising that many employers are not recruiting as much they did and we are definitely not as busy as we were this time last year. However, having an invoice finance facility in place gives us the peace of mind that our cash flow will always grow in line with our business.
“We have been delighted with Bibby Financial Services’ quality of service and professionalism and invoice finance is well and truly incorporated into our business plan going forwards.”