In late 2007, Lloyds TSB Commercial Finance, the specialist invoice finance division of Lloyds TSB Bank launched a new division designed specifically to meet the needs of recruitment companies.

Traditionally recruitment companies have been well suited to using invoice finance owing to the fact that payment of invoices is usually no issue as long as staff are still required by the end customer. The new Lloyds team couples the skills of its existing invoice finance division with the payroll finance company CashFriday. The mix of invoice finance and payroll finance should allow companies in the recruitment sector to:

• Get paid earlier and
• Gain access to additional borrowing if required through the payroll finance

The new division will fund approximately 15% of all recruitment companies across the UK and companies funded by this team will also have access to the business banking facilities provided by the mainstream Lloyds TSB Bank.

Paul Sanders, director of the new Lloyds TSB recruitment finance division was upbeat when talking about the launch:

"The recruitment industry is one of the most dynamic industry sectors in the UK. There is a high volume of start-ups and a significant amount of mergers and acquisitions between existing providers. The sector is also interesting because of the legislative environment in which it works... one of the most challenging in this country.

"To be able to provide the right financial solutions you need to have an in depth understanding of the business sector in question. In this case our belief is that you can only achieve this by providing managers who are solely dedicated to the recruitment industry.

"The combination of our CashFriday brand, which understands the weekly rhythm of payrolling temporary workers for over 400 clients, with over 40 years experience, will offer recruitment companies the reassurance that they are getting the best advice and service possible".

The Lloyds facility, which are available to fund both permanent and temporary staff has been designed with the recruitment company in mind. The CashFriday facility incorporates the following administrative and accounting tasks - saving the business valuable administrative time and ensuring calculations are made correctly: