JMK Alliance is a brand-new service that can help bridge the gap between you paying contractors and receiving a payment from your end client.
In this article, we’ll explain exactly what to expect from JMK Alliance and how it can help you and your contractors with reliable and consistent payments from the very outset of your business.
Agency owners have a lot to juggle. Between finding the right contractors and ensuring that everyone is where they should be, to all the back-office things including managing payroll, waiting for payment from end hirers can add to the stress all around.
The stress is caused when end hirers don’t pay on time, because in those situations the contractors often don’t get paid on time either. And in this candidate led market, that could mean the difference between keeping and losing contracts.
This is where JMK Alliance comes in.
JMK bridges the gap between the end hirer and the contractor, by making payroll ourselves. The invoice is raised to the end user, and even if they haven’t paid on time, we make the payments to the contractors. This gives everyone involved peace of mind and consistency.
We can offer JMK Alliance to any agency working with an end user, where credit insurance is available for the end user or client (there are no credit insurance requirements for the agency or agency owner).
JMK Alliance is a straightforward way of ensuring that contractors are paid on time, every time, regardless of the speed of payment from end hirers.
Your agency will provide workers to the end user as normal, under your own terms and conditions. JMK then receives the timesheets or hours worked from the agency and raises an invoice to the end user (at the charge rate).
In the meantime, JMK pays the workers through the chosen payment method at the pay rate.
Invoices sent to the end user are raised in your name, with contracts created between your recruitment agency and your clients/workers, all invoices and notifications to clients and contractors are branded with your own agency logo and identity, with clients aware that invoices are assigned to JMK.
Once JMK has received the payment from the end hirer, we deduct the amount already paid to the workers and release the remaining margin to the agency.
For CIS startups the benefits are even greater, as not all new businesses can qualify for gross payment status. To qualify you need to pass a turnover test and other criteria set by HMRC, we remove this barrier as you can use our gross status as invoices are raised by JMK Alliance.
The main benefit of JMK Alliance is peace of mind that contractors will be paid on time and every time. We all know that end hirers can have lengthy and complicated payment processes, this can hold up payments to contractors, who might then go elsewhere. In a labour market which is famously short of people power it needs to service end hirers, losing contractors to the competition due to slow payments is devastating for agencies.
JMK Alliance is particularly useful to new agencies and recruiters who might not have the capital in place to cover payroll and who might not have the credit available to borrow money in the traditional way. JMK Alliance completely removes the barrier to recruitment which might be holding you back from growing your agency.
Also enjoy minimal payroll administration, JMK Alliance makes covering payroll easy, as we raise the invoices to the end hirer ourselves.
We can pay workers weekly or monthly, regardless of how we bill the end hirer. You will also have an option of choosing how you would like your margin paid, we can offer
If you’d like to find out more about using JMK Alliance and how it can help make payroll run more smoothly, get in touch today!