Payroll factoring is an easy and convenient process. Here are three tips for working with your payroll factor.
- Communicate. If you have questions, problems or concerns, talk honestly with your factor. Your contacts will be more willing to work with you if you have an ongoing, open relationship than if you wait until the last minute and they don’t know who you are.
- Notify your factor of any changes. When you begin payroll factoring, you will provide employee names, Social Security numbers and other information so your factor can seamlessly fund your payroll. However, as new employees are hired or employees depart, you need to update your factor immediately to avoid any hiccups.
- Review your options annually. Even if you think you have a great deal, it’s wise to review your payroll factoring options each year. Both banks and factors often offer aggressive rates to gain new business, and if you find a better deal than the one you currently have, let your factor know. Most often, it will beat the competing price to keep you as a client.