In a bid to fortify the recruitment and labour hire sector, non-bank business lender ScotPac has forged an exclusive partnership with specialist payroll funding and back-office solutions provider APositive. The collaboration aims to offer a suite of essential services to businesses operating within the $20 billion recruitment and labour hire industry across Australia and New Zealand (ANZ).
ScotPac serves approximately 8,000 clients across the ANZ region and has a lending growth of 80% for the last two years, a media release said. APositive specializes in tailored payroll solutions for recruitment, labour hire, and other contingent labor industries, having processed over 120,000 contractor timesheets and funded over $3 billion for payroll since 2013 through its custom-built technology platform.
Despite the challenges posed by COVID, inflation, and interest rate fluctuations, the recruitment and staffing sector in ANZ has remained resilient, with over 10,000 businesses employing around 350,000 individuals—equating to about 2.5% of the working population. Notably, the number of these enterprises in Australia alone has been on a steady rise, growing by an average of 3.8% annually since 2018.
The media release noted the benefits from the strategic established partnership between ScotPac and APositive:
Craig Michie (pictured above left), group executive for client acquisition at ScotPac, emphasized the significance of the partnership in providing cash flow certainty and peace of mind for recruitment and staffing businesses.
“By partnering exclusively with the market-leading payroll funding and back-office solutions provider in APositive, we are giving our clients the best chance to grow and succeed, particularly those in the start-up phase when help is needed most,” said Michie.
“We look forward to leveraging the synergies across our two businesses to provide an unrivalled package of services for existing clients and new entrants in this thriving sector.”
Echoing Michie’s sentiments, Danny Marlow (pictured above right), CEO of APositive, expressed confidence in the value the partnership brings to recruiters and labour hire business owners.
“Establishing and growing a recruitment or labour hire agency is a challenging endeavour, and finance and payroll management are two of the most complex yet vital ingredients,” said Marlow.
“By joining forces with the region’s largest and most experienced non-bank lender in ScotPac, we are really excited about the prospect of giving more business owners the freedom to focus on new opportunities and grow their business.”
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