Choosing the right Payroll Funding company can be one of the most important tasks you set for your Staffing Agency. No matter what the type or size of business, covering payroll is a top priority and it must follow a set schedule and cannot be delayed. Choosing the wrong Payroll Funding provider can cost you time, money and potentially leave you without funding when you need to make payroll consistently.
When making this choice, we have armed you with the right questions to ask to make sure this is the optimal Staffing Finance business to partner with.
Choosing the right Payroll Financing provider for you – questions to ask:
1. How long has the financing company been in business?
You want to work with a funding partner who has a proven stable operating history. Although length of time in business doesn’t always guarantee quality, it is an indication of stability. Don’t forget to do your research and read any client reviews that are available.
2. How much staffing industry experience does the financier have?
Look for a Payroll Funding provider who has experience working with staffing businesses – do they understand and can they clearly and specifically talk about your business challenges or are they being vague? Do your homework and look for testimonials from other staffing businesses. Look for a well-rounded funder not necessarily for someone who is focused on the staffing industry – in many cases, the latter will cut financing to their clients overnight if they feel they are too exposed to a single industry.
3. What are the funding limits for staffing companies?
You want an honest answer – all funding companies have lending limits, look for those who are honest about their limits and are able to explain clearly how those limits are set, including what information they require to make the decision and how you can renegotiate the limits should your business’ situation change.
4. Will the funder contact your clients?
Because Payroll Funding is based on your accounts receivable, the funder may have contact with your clients to some extent. When you have a reliable funder, they will be upfront about anticipated client interactions and provide a source where you can check in on account activity. Be wary of funders who are ambiguous about the process or avoid answering the question altogether as the intention should be not to confuse the client but quickly collect on outstanding invoices before they become a detriment to the business.
5. Are any parts of the operations outsourced to third parties?
The funding should be handled by the lending company and not be outsourced. If any of the funding is outsourced to a third party (usually a lending platform), the funder doesn’t have control over it and cannot guarantee that the agreed upon funding limits will be met. On the other hand, as funders aren’t experts in back-office services such as timesheet management, payroll preparation, worker’s compensation, etc., they will often outsource these to a specialist. However, you shouldn’t be obliged to sign up for these additional services if you prefer to keep things in-house or you already have a partner who is managing your back-office.
How Payroll Funding With Bibby Financial Services Works
Step 1: Invoice your customers
Step 2: We pay up to 92% of the value of your invoice
Step 3: We collect payment
Step 4: We pay any remaining balances
If you have any questions or concerns regarding Payroll Funding for your B2B business, feel free to contact our Payroll Funding experts at (877) 882-4229 or email us at email@example.com.