The new year is the perfect time to take a fresh look at your payroll funder. Maybe your business has grown, or you’ve added employees, or your needs have changed in other ways. If any changes have occurred, changing providers could save you money and help you be more productive in 2019.
Here are 5 signs it could be time to cut ties with your current payroll funder.
- You’ve outgrown the relationship. As your agency grows, it may add offices, expand its client base or ramp up staff. Your payroll funding needs will change, as well. Does your current payroll funder offer special software or back-office services to help you operate efficiently? Can you access additional factoring services, such as direct deposit and prepaid payroll cards? You may also need a more cost-effective solution. Hidden fees can strain your business as you expand, but a different provider may offer comprehensive factoring rates that include services such as 24/7 credit monitoring, postage, envelopes, invoices, W-2’s, and wire transfers.
- It’s not reliable. You rely on your payroll funder to pay your temp agency employees in a timely manner. If it went out of business, your company would be left in a risky situation. You may not be able to review the finances of your payroll funding company, but it’s important to find a funding partner you can trust. The company should have a track record of strong financials, bank and client references, and an ample list of long-term clients. Experiencing late payments or other recurring problems is a sign that your funder may be treading water — and you’re putting your agency in jeopardy.
- Communication is poor. When you have issues or concerns, your payroll funding company should be available and willing to address them in a timely manner. Good communication is essential for the relationship to work well and for you to maintain strong customer and employee relations. When you call, does your funding provider know who you are? Do you get a live person, or an answering service? How long does it take to return your call? Many reputable payroll funding companies offer extensive support services and have employees available to take calls on nights and weekends. Transparent, honest, considerate communication is also important, as your funding partner must provide the same seamless service to your clients.
- It’s not specialized. A payroll funding company that specializes in the staffing industry, and more specifically, your staffing niche, will have an in-depth understanding of your business. It can help you make more informed decisions because it has a proven knowledge of the issues and financial needs of staffing companies. Communication will also be smoother, as a payroll funding company for staffing companies can provide expertise in your industry to help you solve problems and help your business grow. A partner with at least 25 years experience in payroll funding for the staffing industry demonstrates a strong track record of success.
- You’re not the only one with a bad experience. If you have concerns about your payroll funding provider, you’re probably not alone. Ask around to see if other firms have used the company and what their experiences have been. What do people say in their online reviews and testimonials? Check out the Better Business Bureau. Even if your experience has been adequate, are there areas you’ve asked your current payroll funder to improve on, but nothing has changed? If you’re not being heard — or your payroll funder isn’t focused on giving you a great experience – it’s time to move on.
All of these issues indicate it’s time to explore your options and find a new payroll funding provider. Consider all of the factors that are priorities for your business and find a partner that combines affordable products with top-notch customer service, technology, flexibility and industry expertise.