Aldermore has extended an £8 million working capital facility to Flo Group, the recruitment sector-focused technology and funding provider, in a deal set to support its next phase of expansion across the UK.

Flo Group, established in 2013, provides funding and CRM software to temporary recruitment businesses. The new facility will be used to grow its funding division, Cash Flo, and is expected to support an additional 50 to 60 staffing agencies over the next 18 months.

The deal is aimed at helping more recruiters access working capital while improving operational efficiency through Flo’s back-office and software solutions.

The move comes as temporary staffing businesses across sectors such as education, healthcare, construction and hospitality face increasing pressure to optimise operations and manage cash flow.

REDUCE FRICTION

Nathan Golby, director at Flo Group, said the deal would help Cash Flo deliver on its mission to reduce the financial and operational friction faced by recruitment entrepreneurs.

“This new facility allows us to unlock even more working capital for recruitment agency owners across the UK — removing the usual financial and operational barriers,” he said.

“Our mission has always been to make it easier for recruiters to build successful agencies — and now with Aldermore’s support, we’re ready to help even more of them do exactly that.”

He also praised Aldermore for its support beyond the funding itself, noting the introduction of John Gribbon as a new non-executive board member.

“A level of service that truly went above and beyond and was a real bonus of working with the team at Aldermore,” Golby said.

Alex Hazell, business development manager at Aldermore, said: “We’re dedicated to being a reliable funding partner for innovative companies like Cash Flo.

“By providing this growth funding facility, we’re enabling them to scale their operations, enhance service delivery and help more recruitment agencies succeed.”

HYBRID PROPOSITION

Cash Flo’s hybrid model combines software-driven back-office support with funding to help agencies manage their businesses more effectively — a proposition that has resonated with temporary staffing firms looking to reduce administrative burden while increasing their agility.

Navigate Commercial Finance advised Flo Group on the transaction. Managing director Paul Varley said: “We’re delighted to have assisted Nathan and the management team to secure this extended funding facility with Aldermore that matches Cash Flo’s exciting growth and employment aspirations.”

He added: “With Aldermore’s deep understanding of deploying back to back facilities and expertise in the recruitment sector, coupled with Cash Flo’s agility to fund and support recruitment agencies, we hope this to be a long term thriving partnership.”