Last week I shared some insight into the shape of the UK recruitment market and now I’ve been looking at Growth Street. Having taken a proper look I’ve done a quick review. Growth Street was created to help businesses at the developing stage where a small bank facility cannot cover growth projects and cash flow management, and where more substantial capital from banks is impossible to acquire.
Their recruitment clients are businesses that have been trading for two years or more with a turnover of more than £400,000. Within the growing recruitment industry there will no doubt be increasing numbers of great businesses who find themselves in this kind of position.
A Growth Street overdraft is a ‘square peg for square holes’ kind of product. One of the selling points will be that it is fast, easy to use and transparent in terms of cost. Recruitment businesses can access up to £150,000 of revolving credit. You only pay interest on what you use and there is either a monthly service fee of 0.16% OR an annual 2% fee. You can draw down anything from 1p to the full amount, and when repaid you can draw down in full again. This makes it ideal to fund growth projects like hiring, cover major period payments or simply give you some flexibility around balancing outgoings against incoming invoices.
Growth Street looks to “partner” with recruiters that want to see their businesses grow. That’s why their facilities don’t become more expensive as businesses need more funds or grow their revenue. Interestingly, Growth Street are working towards not only helping businesses grow and manage cash flow, but also predicting, and proactively dealing with, cash flow needs by integrating with the accounting software increasingly used by more businesses in the industry.
If you are a boutique recruitment agencies with 2-20 users, been trading for 2+years, have a turnover of more than £400,000 and are looking for a modern, fast and simple source of finance – check them out!
