For staffing agencies that are struggling to make temp payroll, finance options are out there. Yet many staffing agencies are so eager to find a lender their temp payroll financing that they don’t do their due diligence in the application process. The result is that they’re turned down by lenders, or worse, roped into a bad deal, paying high interest rates or getting dropped by their bank at the first sign of trouble.
Are you looking for a lending partner to fund your temp payroll? Finance help is available, if you know how to apply. Here are some tips to help you find the best partner for your temp payroll financing.
Put out feelers
Temp payroll financing for staffing companies is available from a variety of sources. So the first step is to look at your needs and see what kind of lender would be the best fit for your firm. Do you just want a partner to pony up capital each month, or are you looking for a close relationship with your lender? Make your needs known as you ask for recommendations, do online research or meet lenders to discuss fees and services.
Apply to multiple lenders
To get the best deal on fees and interest rates for your temp payroll finance, apply to a variety of lenders. Some banks prefer payroll funding for staffing companies that are more established. Others will work with you to come up with alternative arrangements. Rather than put all your eggs in one lender’s basket, check out several to see what deals you can get.
When you apply to lenders, they may ask you for documentation including:
- Articles of incorporation or DBA filing
- Insurance certificates
- Outstanding invoices
- Customer lists
The last thing you want is to have your temp payroll financing held up because your lender is waiting on paperwork. If you haven’t done so already, it’s time to get your financial house in order. Rework your recordkeeping system so that you can provide pertinent financial information to your lending partner on demand. For example, organize invoices in easy-to-digest formats. This will help you both secure funding and maintain a good customer-lender relationship.
Ask about free services
In addition to payroll funding for staffing companies, certain specialty lenders such as “factoring” lenders provide other valuable temp payroll finance services for customers free of charge, from filing and paying your payroll taxes to assisting with asset management. Before you dot the I’s on a contract, see if there are any extras that your lender is willing to throw in for free, as it never hurts to ask.