Recruitment Startup Company Funding Options To Choose From

Although you may already have years of experience in the recruitment industry and you have the talent and connections that motivate you to start your own staffing agency, there may be one important thing that can be stopping you: financial funding.

Regardless of the size you want your start-up recruitment business to be, you will need money to run your venture. Even if you will just be working with another employee, you will still have to worry about your staff’s salary, office lease, utilities, and necessary supplies, etc. For all of these, you will need money.

Funding Solutions For New Recruitment Firms

For individuals interested in opening their staffing agencies but have worries or problems with their finances, below are the usual recruitment startup company funding options to choose from:

1. Bank funding

A bank is the first institution businesses go to for their funding needs. Such establishments are able to give small business loans and even good financial advice, too. You can choose to work with your current bank or another one but experts say that it may be easier for you to secure the funds if you already have a relationship with your bank manager. The primary benefit of using a bank for funding is that you agree on the repayment terms up front and it is non-negotiable. As such, if you agree to a loan with a certain fixed interest rate and your recruitment agency becomes really successful, you will still pay the same amount. 

 2. Investor funding

Gaining funding from an investor, whether it is a venture capitalist or a silent partner, will really work to your advantage. You stand to get some excellent commercial advice, financial support, and even a list of networking contacts. However, think carefully before going with this option; this is because if your business does very well financially, your investor will take a chunk of your profits if you agreed on  the percentage of ownership terms rather than simply paying them back with interest. This may seem like a good idea at the beginning but it can end up costing you far more.

3. Funding from family and friends.

Lastly, although it can be tempting to ask your family and friends for financial support for your start-up company, keep in mind that this is an option fraught with difficulties. What could happen is that you ask your family if they can afford to help you set up your business and they will say yes when they really mean no. And even if they do have the money to share or lend you, they may make judgements as to how you are spending the money.

Source:

http://wearessg.com/setting-up-a-recruitment-business offers more details regarding recruitment start-up company funding.

Salary Sacrifice Scheme – What Is It?

People certainly work for money. They work so they can have the financial means to get the things they both need and want. Perhaps you have heard about a salary sacrifice scheme; but do you know what it is? And why would someone sacrifice his/her salary if there are a lot of financial responsibilities to deal with?

Facts About The Salary Sacrifice Arrangement

The salary sacrifice arrangement is also knows as total remuneration packaging. It is not as simple as you think it is wherein you are just going to give up your salary for nothing in return. This is an agreement between an employer and an employee where the latter agrees to sacrifice a part of his/her salary in exchange for some non-cash benefits having the same value. Such arrangement is often settled before work is performed. Most importantly, it is most efficient with a contract. Employees usually negotiate such arrangement based on their requirements. Also, the contract is drawn up according to the results of the said negotiation.

Prior to deciding to enter into this arrangement, there are several important things to consider. First, your employer might be required to report various benefits on your payment summary. Second, you still have to pay your income tax even so it can be very challenging for you to budget the money you bring home. Third, your employer might be liable to pay FBT on the non-cash benefits you will receive. Fourth, reduced wages can affect your contribution-based state benefits. Lastly, salary sacrificed superannuation contributions are regarded as employer superannuation contributions rather than employee contributions. Hence, they will be taxed in the superannuation fund that is under tax laws.

Benefits Of Salary Sacrifice Arrangements

Exempt Benefits – These are work-related items like tools of the trade, protective clothing, electronic devices, and computer software.

Fringe Benefits – These will include expense payment for school fees, child care costs and school, cars, and properties like shares or bonds, goods, and real estate.

Superannuation – Under an efficient salary sacrifice arrangement, this benefit will have 2 conditions. First, it will not be considered as a fringe benefit if paid for an employee. Second, superannuation contributions that are made for the benefit of an associate will be considered fringe benefits.

When it comes to dealing with salary sacrifice scheme, there are indeed a lot of components to consider. Hence, you must study it thoroughly so you will know if it is really something that you want to engage into. Determine if it can help you better manage your finances and your life. It would be a smart idea for you to consult an adviser and obtain the right education about such provision.

Source: www.personalgroup.com is your best resource if you need help in making your employees happy. They offer products and services that can help you attract and retain loyal, competent talents in your business.

The Benefits Of A Bank Guarantee Letter For Your Market Expansion

All businesses start from a totally unknown entity. And if your venture is still in such position, it can be very tricky to drive it toward better performance and enhanced results.  Besides, people often buy from trusted, reliable businesses. Also, suppliers offer better deals just to firms that have a good working history with them.

If they do not know you yet, how exactly can you build trust? How are you going to establish relationships if they just seek the brands that they are already familiar with?

Asking a trusted company to vet for your venture is an excellent way of breaking through this barrier. If you are searching for an opening allowing you to present offers as well as negotiate more smoothly with your suppliers and buyers, a bank guarantee letter from a reliable global financial institution can be of great help.

Facts About A Bank Guarantee Letter

A bank guarantee issued by a financial service provider in the form of financial guarantees that can be used for paying custom charges and lease and as a cash deposit alternative. This can also be in the form of a non-financial guarantee like tender bonds. Your bank can also issue standby letter of credit to your buyers and suppliers. A bank guarantee will offer you great opportunities to make the following happen:

Find opportunities to meet potential partners and suppliers as well as secure more favourable deals with them.

• Be able to submit a financial guarantee when a business situation requires it.
• Conduct business abroad. Be aware that when you work with a global bank, its name will definitely be recognized in most countries you might want to explore.
• Become confident at dealing with larger, older, and more established entities like government institutions and corporations.
• Ease of access to capital for financing expansion and other investments without affecting your cash flow.
• Be able to explore other income-generating activities requiring participants to submit validating documents.
• Since the guarantee holds the bank accountable in case you failed to meet your obligations, a bank guarantee will offer protection for your buyers.

Be reminded though that you must only get a bank guarantee letter from the right financial institution. The weight of the guarantee will greatly depend on who issued it. Hence, a guarantee letter from an internationally-recognized commercial bank will certainly inspire more confidence in your prospects to work with you as compared to a guarantee letter from a lesser-known, small domestic bank.

Getting The Investor Services Of Reliable Project Management Consultants

International corporations consider the United Arab Emirates as among the best venues for global operations because of its location and membership in the FTA. But apart from this, another factor that contributed to the constant progress of the country is how developmental efforts are performed easily and smoothly with the help of project management companies and consultants. Indeed, getting their investor services will not just lend the experience and knowledge necessary for project completion but also inject innovative techniques to guarantee the success of the undertaking.

Benefits Of Partnering With Reputable Project Management Companies

An unbeatable combination of quality assurance, innovation and control is probably the main benefit of partnering with these companies. They are good at exploring time-tested and innovative techniques to make sure that the end result will become an asset for the company, not a liability.

Despite complex challenges, they thrive on delivering these benefits. They actually enjoy stumping financial and organization aspects of complex projects by using procedures they know will work very well. In fact, they become excited to discover new formulas and materials since this will not just benefit the clients but also their own reputation and image. The prospects of being the very first person to execute will secure their spot in today’s competitive industry.

When it comes to quality, project consultants in the UAE are considered among the best worldwide. Dubai indeed proves that no challenge is too difficult so long as there is an excellent project management. Investors will be rest assured that they can get the help they need whenever they must complete projects that can change the course of their business.