One of the most popular funding options for growth recruitment businesses is debtor finance, as the line of credit grows comfortably with the business. National recruiter Allstaff Australia came to debtor finance as a short-term solution but found it a valuable long-term funding option.
Over the past decade Allstaff Australia, a blue collar recruiting business founded in Canberra, has grown from $10 million annual turnover to the $90 million mark.
It is this growth that was the biggest reason for the business owner, Glen Johnson, to choose debtor finance – “it is a funding solution that really allowed us to grow”, he says.
“Our personal assets were enough to run the business when it had a $5 million turnover, as we could fund that with an overdraft.
“We were actually using one of the big four banks and when an overdraft wasn’t enough we tried debtor finance with them, but at some point they just weren’t interested in letting us expand.”
They turned to Scottish Pacific about ten years ago and haven’t looked back since.
Today Allstaff Australia provides permanent, contract and temporary staff to a range of industries including engineering, construction and trade, nursing, supply chain and logistics and government, with their biggest client being Woolworths.
The business has been franchised into each state. With fairly narrow margins, Mr Johnson says debtor finance provided the capital needed to support the growth of the business.
He says communication is easy with Scottish Pacific, and he has appreciated the great continuity with their staff.
“With our bank, we’ve had six different account managers in 10 years. Scottish Pacific have been able to give us a very continuous service.”
Allstaff Australia is an independent and Australian-owned national recruitment organisation offering an extensive choice of permanent, contract and temporary candidates to companies and a wide range of job opportunities to those considering their next career move. Since 1991, Allstaff Australia has delivered recruitment services to some of Australia’s leading organisations. http://www.allaus.com.au/