Why Choose New Millennia Group
For a temporary recruitment agency few things are as important as their back office processes running smoothly. New Millennia is a company focused on providing a flexible, client-focused approach to finance and Back office Systems.
Financial Service
New Millennia's finance facilities have been used successfully since May 2000, they are a Group of companies, which provides financial and administrative services to the temporary recruitment industry, and which prides itself on giving tailored, bespoke solutions to staffing agencies. The team at New Millennia understands that independent temporary recruitment agencies need to compete with large national players yet sometimes lack the resources to do so on an equal footing. The company aims to level the playing field by providing payroll processing, invoicing, credit control, bad debt protection and a host of other services, allowing agencies to get on with the job of servicing their clients while being secure in the knowledge that the back office is being taken care of in a professional manner. But this is not what sets New Millennia apart from other companies operating in the same business space. What makes them different is their focus on client service and their desire to work with agencies on an equal business partner basis. New Millennia's client service manifesto is to deal with their partner agencies honestly, ethically, with integrity and a genuine desire to continually improve their quality of service and products through attention to detail, listening, responding and being flexible. the success of this approach is illustrated by the fact that they still have a large number of clients who signed up with them since 2000 as New Starts and are now individually generating between two and five million pounds plus a year in sales.
Client Focus
The man behind the client service mantra is Group Managing Director Don Payne, who set up the company and who has been in business long enough to understand that it is relationships with customers that can make the difference between success and failure. Don's experiences in business during the 1980s led him to understand the importance of cash flow to the success of an enterprise and how the right staff are key to a company's growth. Putting the two together he came up with the idea for New Millennia. "I knew how it all worked" he explains. " I understood factoring finance and knew the advantages, disadvantages and the potential pitfalls. And I didn't think that agencies were having it properly explained to them - the good and the bad."
With that in mind New Millennia's client-focused approach was clear. Don is ably supported by two other senior members of staff, Operations Director John Grice and Finance Director Nik Hynes. With a background in sales and administration, John believes in the personal touch. "I know the owners and managers of the agencies on first name terms so if there is an operational issue they can contact me and we can deal with it there and then. I speak to them on a regular basis and I think it's important that a director/partner of his own recruitment company knows he's got an immediate direct line to a director at New Millennia."
With a strong background in finance, Nik is a chartered certified accountant and a fellow of the ACCA. Nik is involved in the strategy side of the business developing new finance products and helping agencies to understand which one of New Millennia's finance products is right for them. "What sets us apart from other providers is the flexibility of funding we offer," Nik explains. "We have built sophisticated financial models that illustrate how finance products available in the market today, such as retention and recourse products, work within their business. For instance there are major cash flow differences when an agency's business is split between paying temps on P.A.Y.E or as contractors. These differences are illustrated clearly by our finance models and allow the agencies to have a greater understanding. Again this is one of the ways we work closely with our agencies as business partners."
With that in mind New Millennia's client-focused approach was clear. Don is ably supported by two other senior members of staff, Operations Director John Grice and Finance Director Nik Hynes. With a background in sales and administration, John believes in the personal touch. "I know the owners and managers of the agencies on first name terms so if there is an operational issue they can contact me and we can deal with it there and then. I speak to them on a regular basis and I think it's important that a director/partner of his own recruitment company knows he's got an immediate direct line to a director at New Millennia."
With a strong background in finance, Nik is a chartered certified accountant and a fellow of the ACCA. Nik is involved in the strategy side of the business developing new finance products and helping agencies to understand which one of New Millennia's finance products is right for them. "What sets us apart from other providers is the flexibility of funding we offer," Nik explains. "We have built sophisticated financial models that illustrate how finance products available in the market today, such as retention and recourse products, work within their business. For instance there are major cash flow differences when an agency's business is split between paying temps on P.A.Y.E or as contractors. These differences are illustrated clearly by our finance models and allow the agencies to have a greater understanding. Again this is one of the ways we work closely with our agencies as business partners."
Product Offering
But of course, any business can say that they offer top service levels but the real difference comes with the product offering - and here New Millennia have it right too. With their Inland Revenue approved payroll software they handle every aspect of payroll from time sheet processing to end of year P60 and P35 returns. For established agencies New Millennia offers a unique flexi-factoring system, which enables agencies to acquire up to 100 per cent invoice funding, combined with a tailored back office package. Contracts are flexible as well with 7 day, 90 day and one-year notice options available. Don is strident about the 7 day contract his company offers and says it was the first in the UK and that many other deals, which are advertised as 7 day contracts, are no such thing. "Under our 7 day contract if the agency wants to leave they can do so in 7 days with no strings. "other companies say they offer a 7 day contract but look at it carefully , some contracts we have seen state that the agency can leave in 7 days as long as they buy back all outstanding book debts (invoices). How is that a genuine 7 day contract? If you haven't got the funds you can't get out of the contract!"
Don is frank that his company is not the cheapest finance provider in the market, but is confident that it is the best value for money. "If an agency makes its choice based solely on the cheapest finance provider on the market, will that provider look at their business in detail? No they won't. They won't provide the level of advice and attention to detail that we do. And then when there's a cash flow problem three to six months down the line, that agency is stuck with that finance and service product with no room to manoeuvre because they are contractually locked in to that one product."
Don is frank that his company is not the cheapest finance provider in the market, but is confident that it is the best value for money. "If an agency makes its choice based solely on the cheapest finance provider on the market, will that provider look at their business in detail? No they won't. They won't provide the level of advice and attention to detail that we do. And then when there's a cash flow problem three to six months down the line, that agency is stuck with that finance and service product with no room to manoeuvre because they are contractually locked in to that one product."
New Starts
For new start-up recruitment businesses New Millennia also offers a unique package. The company offers the only true fully insured, non-recourse, non-retention, and 100% funding facility available in the market today. What does that mean? It means that New Millennia pays the agency 100% of its profit margins every week, pays the temps every week and New Millennia is legally responsible for the V.A.T and P.A.Y.E Deductions.
"Other providers say they offer 100% funding but read the contract and you'll find that they hold on to your weekly VAT. That's a retention; It's also V.A.T that the agency is legally responsible for. How is that 100% funding? It isn't," says Don. For new start recruitment business his advice is clear. "Attention to detail is key," he says, "Don't make a decision based solely on the price. You may think a particular funding facility is cheaper but it will be counter-productive if it gives you a major cash flow headache and you can't pay your bills. Make sure you understand the differences between funding facilities (recourse and non-recourse and retention and non-retention). Do your research. For instance the last thing you want is a V.A.T bill that you can't pay because your V.A.T money is being retained."
For recruitment agencies focused on growing their business and servicing their client base, the back office and finance function can be a headache, which gets in the way of doing business. But the right finance facility/provider is essential for success. Don is clear about what potential entrepreneurs or agencies should do. "Shop around and look at the market. Make sure you understand the different finance and back office facilities on offer and which one suits your business model. Before you sign anything get a solicitor to check the contracts and get an accountant to check your cash flow model. Don't listen to slick sales people who have a weak product and spend all their time trying to hide that fact by slating other providers' products and services, stick to the facts! In any business your cash flow is as important as your sales and you need to get it right."
"Other providers say they offer 100% funding but read the contract and you'll find that they hold on to your weekly VAT. That's a retention; It's also V.A.T that the agency is legally responsible for. How is that 100% funding? It isn't," says Don. For new start recruitment business his advice is clear. "Attention to detail is key," he says, "Don't make a decision based solely on the price. You may think a particular funding facility is cheaper but it will be counter-productive if it gives you a major cash flow headache and you can't pay your bills. Make sure you understand the differences between funding facilities (recourse and non-recourse and retention and non-retention). Do your research. For instance the last thing you want is a V.A.T bill that you can't pay because your V.A.T money is being retained."
For recruitment agencies focused on growing their business and servicing their client base, the back office and finance function can be a headache, which gets in the way of doing business. But the right finance facility/provider is essential for success. Don is clear about what potential entrepreneurs or agencies should do. "Shop around and look at the market. Make sure you understand the different finance and back office facilities on offer and which one suits your business model. Before you sign anything get a solicitor to check the contracts and get an accountant to check your cash flow model. Don't listen to slick sales people who have a weak product and spend all their time trying to hide that fact by slating other providers' products and services, stick to the facts! In any business your cash flow is as important as your sales and you need to get it right."
