As a staffing owner, you’re well aware of the payroll issues and the challenges peculiar to our industry. As you navigate financing opportunities, it’s wise to consider funding firms. Unfortunately, funding companies have had a reputation over the years for high costs. Is this true, or is it a myth? Frankly, it’s a myth, but like many myths, it’s rooted at least partially in reality.
It is true that some unscrupulous bad actors in the industry have used hidden costs or daily fees that have left owners shocked. In addition, in some cases, the funding company will use a pricing formula that is so abstruse that you’re lost in the weeds. These problems can literally wreck a staffing firm.
The good news is that there are many reputable funding firms that are repairing these black eyes. As a staffing owner, you can relate to how a common perception of staffing firms is that they exploit clients or workers. But of course you know there are many staffing firms – and if you’re reading this, surely you are one – that care about right placements, good customer service, and get real satisfaction out of helping people find work.
You want a funding company that leaves you with no surprises. In the staffing industry, there are a few funding companies who thrive by being transparent with their fee structure and offer a true partnership in a staffing firm’s growth. With these companies, you’ll get access to the capital you need without any surprises about the cost. Here’s what to look for.
Things to Consider When Looking for a Funding Partner
1) The first detail is right in our headline above:
You want a funding business that will work to understand your particular business needs and offer you advice and help. In this regard, it’s wise to focus on firms that specialize in the staffing industry. A good funding company can match your level of growth and understand what your goals are, and how to achieve them.
2) Is their fee structure transparent?
At Madison, we pride ourselves on competitive pricing and NO hidden fees.
3) Does the proposed funding company have a track record?
You should look for a funding partner that can bring experience to the table. For example, at Madison we’ve focused on staffing since 1992… and not only that, but we started as part of a staffing firm, so we know firsthand that challenges and opportunities you face, no matter the size of your company.
4) Is the funding company recognized within (and without) the industry, and is it an active participant in it?
A good clue here is to look for membership in respected associations. At Madison, we’re members of Staffing Industry Analysts and the American Staffing Association and many statewide associations, from California to New York. In addition, we are also affiliated with financial associations, such as American Payroll Association. We’re proud to be known by the company we keep.
5) Does the funding company offer other services?
The good news is that some top-rated funding firms provide other services that help you save money in many ancillary ways. At Madison we provide business intelligence that includes performance analytics that will boost your profitability.
Are you looking for a better way?
Another great resource that will make you more profitable and lessen your headaches is our back office solutions. At Madison Resources, we provide 100% of the back office support your staffing firm needs. From outsourced payroll services and outsourced billing services to our complete back office support solutions, we give you more time to focus on increasing sales, recruiting talent and serving your clients better.
And… back to transparency, this is all included under our one-fee structure.
So don’t be afraid of the myths. Look for a reputable firm that will bring the reality of service and help to your business. Contact us today to learn more.