EncoreNZ has ambitious plans to set up more than 20 franchises in the next few years.
The recruitment agency, emboldened by a partnership with ScotPac that gives the business access to financial smarts and strong cash-flow through Invoice Finance, hopes to dominate the New Zealand market. “We want to create opportunities for like-minded recruiters who have the same vision as us,” says founder Teisha Pihama.
With flexible funding and access to real-time information and data through ScotPac’s online portal, she believes EncoreNZ has the right business model and financial partner to unlock its true business potential.
“We have a great relationship with ScotPac and they always listen. They’ve just been awesome to deal with.”
Recruitment agency EncoreNZ has put in place an ambitious expansion plan on the back of strong cashflow and a great relationship with a trusted financial partner.
Dreaming big and working hard, EncoreNZ is preparing to set up more than 20 franchises in the next few years.
The New Zealand recruitment agency, based in Mount Maunganui, Tauranga, wants to lead the national market and forge long-term relationships with Commercial and Industrial clients in a sector that often has a high client turnover.
“It’s about having really longstanding relationships with clients where you feel as though you’re part of their family and the clients are part of yours. That’s been our philosophy all the way through,” says founder and director Teisha Pihama.
While the business is already performing well, she believes franchising is the key to future growth. “We want to create opportunities for like-minded recruiters who have the same vision as us, who can fly under our brand and get the support, the technology and the business model that we have tried and tested.”
The perfect partner
As a recruitment specialist, Teisha knows all about bringing on board the best people and partners. This is why she is pleased to have a mutually rewarding relationship with ScotPac that has helped her unlock the true value of her business.
EncoreNZ has dealt with ScotPac since 2016 and now has a $400,000 full-service Invoice Finance facility that has alleviated any cashflow concerns that plagued the business when it started seven years ago. The facility provides a line of credit with no need for property security, turning EncoreNZ’s outstanding invoices into a source of readily available funding for operational expenses.
“ScotPac has become part of our business and financial structure,” Teisha says.
Introduced to ScotPac by her accountant, Teisha admits she had little knowledge of Invoice Finance at the time. However, when ScotPac’s business representatives explained the concept she quickly realised it was a smart way to fund the business. Unlocking the assets already in her receivables ledger meant she was able to avoid taking out big bank loans. In addition, ScotPac showed her how to use their online portal that gives her quick access to financial information and data.
“They didn’t just give us a manual. The portal is really informative – it’s live and real-time, it shows money coming in and it feeds great cashflow.”
Flexibility and know-how
The strength and adaptability of the relationship with ScotPac was driven home recently when one of EncoreNZ’s key clients suddenly went into receivership and could not pay its bills. Rather than simply chasing their money, Teisha says ScotPac honoured the debt until EncoreNZ could pay them back. “They said ‘we can work through this together’ and we did, and we were able to trade through the situation.”
ScotPac has also brought rigour and professionalism to the collection of outstanding invoices, while allowing Teisha to avoid taking out big bank loans to fund the business.
EncoreNZ recently won the Business Innovation category at the 2020 Recruitment & Consulting Services Association Awards for its environment-friendly adoption of an efficient paperless recruitment platform.
For Teisha, it is all part of thinking outside the square. In the same vein, the relationship with ScotPac has given EncoreNZ the confidence to assess and pursue its goals and reshape the way the recruitment market can work.
“We can have those conversations and they always listen. They’ve just been awesome to deal with.”
Turning dreams into reality
On the back of ongoing strong trade during the COVID-19 crisis and with ScotPac at her side, Teisha is confident of turning her franchise plans into a success.
She is so impressed with ScotPac’s services that when new franchisees sign up, one of the conditions will be that they adopt the Invoice Finance facility. “It’s part of our franchise agreement,” Teisha says. “If you’re coming on board with us, you’ve got to go with ScotPac because we know this works as part of our business model.”
EncoreNZ’s expansion plans are ambitious, but Teisha is confident: “We’re really fortunate to be in the business we’re in. It’s non-stop.”