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.