Lloyds TSB Commercial Finance is to launch the first recruitment finance division dedicated to UK staffing companies.
Lloyds TSB says it is bringing together expert staff from across its existing businesses into one team providing specialist financial advice and services to recruitment firms in all sectors.
The new division will service around 15 per cent of the total recruitment firms in the UK.
Companies which are funded by the division will also be able to tap into the retail, business and corporate banking services offered by Lloyds TSB in the future.
Lloyds TSB says key benefits of the new division include more effective sharing of best practice among teams, bigger economies of scale due to the aggregation of buying services and greater connectivity with other specialist advisers.
Division director Paul Saunders says: “The recruitment industry is one of the most dynamic sectors in this country. There is a high volume of start-ups and significant level of merger and acq-uisition activity, plus one of the most challenging legislative environments in which to operate.
“To be able to provide the right financial solutions you need to have an in-depth understanding of that operational setting.
“Our belief is that you can only achieve this by providing managers who are solely dedicated to the recruitment industry.”