When Flexibility Makes All the Difference

Don’t be held back by your funding provider.

We’re very fortunate to work with some wonderful staffing companies, and from time to time, they share with us how they feel about working with Tricom. I’d like to share with you one comment that we’re especially proud of:

“What has impressed me the most about Tricom is the flexibility of their people. We had some circumstance, and I’m sure everyone that signs on to a funding company has something unique that has to be handled. Rather than the red tape that I faced with my former funding entity, a bank, the folks at Tricom simply sat down and worked out a way to solve the problem. And so it’s been the flexibility of the people and their ability to look at a problem and a situation and find a resolution to it that’s really been very impressive to me and my entire team.” —Robb Mulberger, TITLE, NRI Staffing

With the recession, flexible credit and payroll funding options seem harder and harder to come by. That’s not a good thing when you’re in the staffing industry since funding needs can change quickly.

When you’re reviewing your funding options, how can you tell if the provider you select offers the flexibility you need to grow your staffing business? We’ve outlined some key questions and processes to look for.

How well do they know the staffing industry?

Traditional lenders often don’t specialize in a particular industry. That can pose a challenge for a staffing company owner. The staffing industry has it’s own unique challenges and needs, and when you work with a funding provider who understands the industry, you’re more likely to be offered the flexibility you need to take advantage of opportunities for growth.

What is their process for increasing a line of credit?

Sometimes you can have an immediate need for credit in order to land a new customer. When this happens, does your funding provider have the ability to review your request for an increased line of credit quickly or does it take several weeks? Do they have strict rules in place, or are they able to approve increases based on whether or not it makes good business sense? Also, is there a fee to increase your credit limit? Understanding this process ahead of time will enable you to avoid potential issues.

How does the funding provider evaluate receivables?

Do they look at your outstanding receivables as a whole or evaluate them customer by customer? How a funding provider reviews your receivables can have a big impact on the credit you receive. If you don’t understand how your receivables are evaluated up front, it can end up paralyzing your business when they won’t extend the credit you need.

How is the funding provider funded?

Look at the ultimate source of your credit—who backs the funding provider? Traditional banks are still keeping a tight reign on commercial lending. Understanding the constraints imposed on your funding provider can help you to know what restrictions you may face with your line of credit.

Flexible payroll funding can be critical to the success and growth of your staffing business. When you’re choosing a payroll funding provider, make sure you understand any potential restrictions up front. It may mean the difference between seizing opportunities and having to pass them by.

It’s the Most Wonderful Time of the Year – For Strategic Planning

By: Julie Ann Blazei, President / CEO , Tricom Funding

In Wisconsin, the snow has already started to fall, signaling the end of another year. For many of us, it’s the time of the year when we are busy wrapping up all the loose ends of the current year and looking over what still needs to be accomplished in 2011 — next year is still a distant month away. Others may already be deep in the trenches with budget planning for the New Year.

Regardless of where you’re at in the process, as 2011 comes to an end, I encourage you to take a few hours this month to review the successes and failures of the current year and do some strategic planning for the new year with a group of your staff

Not sure where to start? Has your current strategic planning process not been as impactful as you had hoped in the past?

2011 Year End Update

Take the stress out of December and preparing for Year End by using Tricom’s Year End Bulletin to stay on top of legislative changes that are important to the staffing industry.

We’ve collected all the relevant, timely and necessary information you need to ensure your staffing company is staying up-to-date with changes that directly impact your business.

Insurance For Temporary Staffing Agencies: What You Don’t Know Can Hurt You

By: Kerri Quigley, CPCU, ARM, AU

Given the nature of your business, owners and risk managers of temporary staffing agencies must address a number of unique liability exposures that frequently are not covered by standard insurance policies. While an agency retains liability for the actions of its employees, those employees are primarily supervised at off-site locations by the agency’s clients. This arrangement can create gaps in insurance coverage that are not always evident without a thorough examination of the policy by an expert in temporary staffing insurance. Often, such gaps are not noticed until an uncovered claim forces the staffing agency to pay full damages out of its own pocket. The following scenarios illustrate this point by examining two plausible situations that may not be covered by a traditional policy.

Has the Weather Ever Delayed Your Payroll Checks

It’s that time of year. The leaves are turning, the air is starting to have that hint of a chill and stores are beginning to display their holiday wares. Not far behind is winter. And along with winter comes the winter storms. Even though you may not live in a climate where blizzards are the norm, that doesn’t mean a nasty winter storm in another region can’t impact your business — especially your payroll.

Bad weather and natural disasters are an unfortunate fact of life. But they don’t have to derail your payroll schedule or keep your employees from receiving their pay in a timely manner. Paid employees are happy employees. That’s why more and more staffing companies are turning to direct deposit and paycards instead of payroll checks. One paycard company estimates that by next year, more than $550 billion of wages will be disbursed through paycards. Plus, this year over 600,000 Americans received their tax refunds via their paycard.

You can’t control the weather or any natural disaster, but you can control when your employees receive their pay with the use of direct deposit or paycards.

Is Self Funding Really In Your Best Interest?

Every once in a while as I speak with staffing company owners, I’ll meet someone who doesn’t use any source of outside payroll funding assistance.

While I respect anyone’s decision on how he or she chooses to run his or her business, I’m always curious as to why they choose this path. So I tend to ask a few questions and learn more about their business.

What I’ve found is interesting. The same types of comments keep coming up in my conversations. “It’s irresponsible.” “It’s not how I do business.” “I’ll lose control of my financial well being.”

In speaking with self-funded staffing company owners, I’ve found they tend to fall into three schools of thought.

Beyond The Numbers: Special Edition - NY Wage Theft Prevention Act

Download the PDF version here

The Wage Theft Prevention Act, effective April 9, 2011, applies to all New York employers. It modifies current new hire notification requirements that have been in effect since late 2009, imposes an annual notification requirement and modifies the information required to be included on pay stubs.

Integrity: How does your funding provider measure up?

Integrity.

It’s something you’d naturally expect from any company you work with. Unfortunately, being forthright, professional and honest isn’t always standard operating procedure these days.

When you’re dealing with something so critical to your staffing company as funding, it’s imperative that you know your dealings with that company will be professional and honest.

Flexibility in a Funding Partner

“It’s very important to have flexibility in a funding partner.”

“And if in fact it was a major chore for us to be able to flex our credit line and so on, then we would probably have to look for a different funding partner.” — Karl McCoy, President & Founder, ProTech Search

After some trying years, the staffing industry is starting to see the light at the end of the recession. Many staffing companies are experiencing opportunities for solid sales and strong growth. These are the start of some exciting times.

2011 Executive Forum

There’s still time to make your plans to head to Miami at the end of February.

The 20th Annual Staffing Industry Analysts Executive Forum is this February 28th – March 3rd at the Fontainebleau Resort in Miami Beach, Florida.

Executive Forum is a great opportunity for staffing company executives from around the country to gather and learn about strategic issues, developing trends, future opportunities and current challenges in the staffing industry.

Looking Beyond The Bank Line of Credit

Looking Beyond The Bank Line of Credit:
The Truth About Asset Based Lending For Growing Staffing Companies

Economists have declared the recession over.

Tell that to small business owners throughout the country still struggling to receive the credit they need to grow their businesses.

A recent article in Crain’s New York Business entitled “Why can’t these companies get a bank loan?” revealed that access to capital is the number one business issue for half of the private companies nationwide. They found that banks are still being extremely cautious with their credit for small businesses, approving only 20 to 30 percent of small business credit applications.

For example, at Wells Fargo, loan decisions are generally based on cash flow plus collateral. Most small businesses’ cash flow has declined, and real estate values have dropped significantly.

2010 Year End Bulletin

ARE ALL OF YOUR EMPLOYEES CURRENT WITH THEIR FORM W-4??

Employees Exempt from Withholding: An employee who certified to his employer on Form W-4, Employee’s Withholding Allowance Certificate, that he had no income tax liability for 2009 and anticipated no income tax liability for 2010 was entitled to an exemption from withholding for 2010. If the employee expects to incur income tax liability in 2010, a new Form W-4 must be given to the employer by February 15, 2011.

Change in Exemptions: If an employee loses an exemption at the beginning of the New Year for any reason, they should also file a new Form W-4 for 2011. An employee who wishes to make changes to their current withholding should also file a new Form W-4.