Why Choose a Payroll Funding Company Rooted in Experience?

Tom Siska

Last Modified : Jan 23, 2024

Fact-checked by: Bruce Sayer

For many staffing companies, the difficulty is not in choosing a financing option but rather in selecting a trusted financial provider. Payroll funding is a mainstream financial solution designed specifically for the staffing industry. This alternative financing option is generally favored as the preferred cash flow solution for speed of funding, reliability, and ease of use. Payroll funding is the ideal financial solution to maximize cash flow and support growth.

There are many payroll funding companies, all looking to attract your business as a new client. They all promise easy qualification, fast cash, and reliable service. So, how do you weed out those that promise but don’t deliver and identify the best payroll funding company for your business?

The best indicators of lender capability are experience, reputation, industry knowledge, and use of technology. Let’s delve deeper into these aspects to better identify the qualities of a trusted financial provider for staffing companies.

Why does experience matter?

As a company owner, you know the value of experience – company leaders have generally seen it all, done it all, and are prepared for the challenges ahead. The financial partner you choose to work with should be equally experienced in all financial matters related to staffing. This experience is needed to ensure seamless and uninterrupted funding to support payroll, meet urgent or unexpected financial burdens, and support growth. To meet this expectation, the best payroll funding company for your staffing business should be resilient and solution-focused – a forward-thinking team of industry specialists with deep roots in the staffing industry.

You know staffing. You know the extreme importance of meeting payroll accurately and on time, every time. If you have been in staffing long enough, you also know that something down the road has the potential to cause a cash shortfall and trigger a financial challenge or even a crisis. It could be an unexpected tax bill, a recalled bank loan, or a growth opportunity that stretches financial resources. Whatever the circumstance, your staffing company needs to know that the payroll funding company you work with will step up to the plate, have your back, and deliver the funds every time you need it. The few specialized alternative lenders with long company histories in staffing have proven their strength and value by surviving the same market conditions that have shaped the staffing industry. Through the financial crisis of 2008/2009, global pandemics, and wild economic swings, these experienced payroll funding companies have embraced technology, and data management advancements to ensure reliable service.

Your staffing company can’t afford to miss payroll – depend on experienced lenders. Their understanding of the industry, knowledge of your business and advanced innovations provide them the fortitude to manage your funding requirements reliably through the boom years and the lean ones.

Why choose experience over rates?

It’s a trick question – you can and should have both. Payroll funding companies with long histories are the market leaders in financing services to the staffing industry. Their long-standing infrastructure and organizational efficiencies have been refined over the long haul to provide maximum customer value at a lower cost per dollar.

Be wary of any lender willing to slash rates to win your business — these are the payroll funding companies most likely to delay funding, pay inaccurately, or fail to respond quickly to unexpected financial difficulties. On the other hand, experienced payroll funding companies are still in business because they are reliable and affordable. Of these experienced lenders, the best and trusted financial providers have a reputation for superior customer service and can boast a proven record of building customer loyalty.

Reputation

Selecting a financial provider to partner with is a critically important strategic decision. Look for a provider with a reputation for reliable funding and superior customer service. Conduct thorough due diligence and choose carefully. Who better consult with than other business owners, accountants, and networking connections to get a broader perspective? Reach out to the existing clients of the financial provider you’re considering. Go to the lender’s website and view the case studies and customer reviews. Positive endorsements from financial professionals and other staffing companies speak volumes.

Industry knowledge and expertise

The significance of your lender’s industry expertise is often overlooked as a vital resource, yet it is one of the more important qualities to look for in a financial partner. First, the lender that fully understands your industry is well equipped to anticipate, react, and solve potential roadblocks that may affect your capital management. Secondly, their relationship with clients and networking connections throughout the industry positions them to collect and analyze data that would be otherwise inaccessible.  As your business success directly impacts the success of the lender, it is in their best interest to support and aid your company’s business management strategies by:

• Performing credit checks on new clients
• Discussing market trends
• Analyzing statistics and data
• Supporting the due diligence process during acquisition negotiations

Working with a knowledgeable lender in this capacity improves management decision-making with in-depth business intelligence.

Use of technology

The most experienced payroll funding providers are also proving to be the most innovative lenders for the industry. eCapital’s breakthrough technology designed to enhance control over capital management is a prime example of this. eCapital Connect is the industry’s most flexible and secure platform providing more control over your funds and enhanced reporting to manage business expenses better. Utilizing a robust online portal to gain full access to your account and eCapital Connect’s capability to move your money instantly, staffing company owners can access funds in hours, move it instantly and track transactions in real time.

With eCapital Connect the stress of ensuring available funds in time for every payroll and accessing more capital to support growth has now been greatly reduced to a comfortable level that was previously only dreamed of in the world of payroll funding.

Easy switching and onboarding

A common situation that frustrates many staffing company owners is dependance and fear – dependance on a lender that falls short of expectation, and fear of missing a vital payroll during the transition to a new lender. The importance of meeting every payroll without exception or issue is so great that staffing company owners may be unwilling to switch financial providers, fearing possible disruption of service during the changeover. Further, company owners are reluctant to learn and adopt a new lender’s new work practices and funding procedures. For these two reasons, many company owners battle through the frustration of working with an inadequate lender – but the frustration is unwarranted.

An experienced payroll funding company will have streamlined processes to alleviate the concern of funding disruption. Safeguards will be in place to facilitate an easy transition from an existing lender to their facility without issue or delay:

• Fast underwriting
• Coordinated transfer of accounts from one lender to another
• Simple one-on-one onboarding orientation sessions
• Easy to manage tools and systems
• Dedicated account manager and customer service

Experienced payroll funding companies regularly gain new business from other lenders incapable of meeting the service expectations of their clients. Making the transition fast, seamless and straightforward to ensure uninterrupted funding creates a positive customer experience and continued satisfaction from day one.

Conclusion

The best indicator of lender efficiency is experience. Reputation, industry knowledge, and advanced use of technology are generally outcomes that result from experienced lenders committed to evolving the betterment of the staffing industry. These are the industry’s financial leaders that pioneer specialized funding products, services, and operational teams that make the lives of staffing company owners easier. When looking for a trusted financial provider, look for an experienced payroll funding company bearing a strong reputation for customer service supported by positive reviews from existing clients.

eCapital’s Roots in the Staffing Industry

Since 2006 eCapital’s roots have been firmly grounded in the staffing industry. Our customer base continues to grow as our reputation for reliable funding, dedicated service and industry knowledge endure. Building relationships based on integrity and trust, we deliver access to more funds faster and with more convenience than competing lenders can provide.

Deploying over $76 million in funding each month and carrying ABL loan balances exceeding $115 million, our team has the expertise and resources to meet your staffing company’s needs with financing available up to $30 million.

For more information about how payroll funding supports your trucking company through changeable conditions, from economic uncertainty to business growth opportunities, visit eCapital.com

Tom Siska

Tom's impressive career includes transformative successes, solidifying his stature in the financial sector. Notably, he drove impactful Sales & Marketing strategies at Sterling Commercial Credit LLC, culminating in a game-changing acquisition. At Grasshopper Bank NA, he played a pivotal role in establishing a thriving commercial and asset-based lending group and his skill in integrating and overseeing acquisitions at North Mill Capital underlined his strategic acumen. His talent for nurturing winning teams and delivering transformative outcomes has yielded an impressive $100MM in stakeholder value across diverse startup and turnaround ventures.