THE RECRUITMENT INDUSTRY GOES FOR GROWTH
Confidence is definitely high in the UK’s recruitment sector at the moment and the latest industry figures suggest that firms are now using a broader range of funding options than ever before to fuel growth.
Research from the Recruitment and Employment Confederation shows the value of the UK’s recruitment industry has now returned to its pre-recession peak. Total revenue reached over £28bn in 2013/2014 – that’s more than £1bn higher than 2007/08 – while turnover growth reached 8.2 per cent per annum over the period.
Recruitment companies, particularly those in hot sectors such as construction, healthcare and education are seeing strong markets with sustainable and increasing margins, allowing them to maximise investment in their teams.
This optimism was reflected during our recent attendance at the annual TEAM conference in March 2015 and it was great to get up to speed with all of our friends from across the recruitment industry, particularly at a time when the mood in the sector is so buoyant.
However deciding exactly how to put plans for growth into action requires careful consideration and recruitment firms should be aware of all the funding options open to them.
Recent data published by the Asset Based Finance Association (ABFA) shows that more and more companies across all sectors are turning to asset-based lending as a way of funding growth.
The level of asset-based lending to UK businesses hit an all-time high of £19.4 billion during the final three months of 2014, according to ABFA, with growth now being the most popular use for asset-based lending amongst UK firms.
As ABFA points out, asset based facilities are a fast and effective way for businesses across different sectors that are looking to pursue growth opportunities.
The strong growth currently seen in the recruitment industry will inevitably lead to increased competition amongst firms in the sector, causing some to rush into decisions that focus on short-terms gains.
Asset-based lending may be a particularly efficient way of funding growth but firms should always take time to establish the best route for their own firm, allowing them to keep pace with their competitors while helping to secure the future of the business.
Roger Brown, Regional Director, Lloyds Bank Commercial Banking
Tel: 020 8727 2017 or firstname.lastname@example.org
Lloyds Bank Commercial Banking
Lloyds Bank Commercial Banking provides comprehensive expert financial services to businesses of all sizes, from start-ups, through to small businesses, mid-sized businesses and multinational corporations. These corporate clients range from privately-owned firms to FTSE 100 PLCs, multinational corporations and financial institutions.
Maintaining a network of relationship teams across the UK, as well as internationally, Lloyds Bank Commercial Banking delivers the mix of local understanding and global expertise necessary to provide long-term support and advice to its clients.
Lloyds Bank Commercial Banking offers a broad range of finance beyond just term lending and this spans import and export trade finance, structured and asset finance, securitisation facilities and capital market funding. Its product specialists provide bespoke financial services and solutions including tailored cash management, international trade, treasury and risk management services.
Its heritage means it has an unrivalled understanding of business needs and a proven track record of supporting businesses across the sectors and regions. Taking a relationship approach, it provides support to its clients throughout the economic cycle. In 2011 the Group provided businesses with over £45bn of finance.
Lloyds Bank has been voted Bank of the Year for an unprecedented nine consecutive years at the FDs’ Excellence Awards in association with ICAEW and supported by the CBI & Real Business. http://www.lloydsbank-commercialbanking.com/