Change.

It’s a fact of life. And in business, how you react to change can mean the difference between success and failure.

But that doesn’t mean we’re always comfortable with change. Sometimes even that slight fear of change — of the “unknown” — prevents us from making decisions that can have a tremendous positive impact.

This is especially true when it comes to making changes to significant business partnerships, such as your funding provider.

If you’re staying in a funding relationship that’s not exceeding your expectations at every turn because the thought of making a switch (and all the work that goes with it) seems daunting, think again.

Transitioning to a new funding provider can be a seamless, simple process if you're prepared and know what to expect.

The process of switching to a new funding provider is relatively simple. There are just a few easy steps to the process.

Research Funding Providers

Wondering where to begin? There are a few places you can start to find reliable, flexible funding options:

• Begin with your state association. See what funding providers are members and review their services.

• Speak to other staffing company owners about their experiences and whom they would (or wouldn’t) recommend.

• Do your own online research to see which providers offer the suite of services you’re looking for. You can also get more information about their company before you contact them.

The Application

Once you’ve contacted several funding providers, you’ll often need to complete an application. Be sure to ask if there are any fees or costs associated with the application process. Not every funding provider charges these fees, but it’s good to be aware of any potential costs upfront.

The application itself will ask about your business and personal financial situation, business references, and market segmentation. It may also require copies of the following:

• Most recent detailed aging report

• Month over month sales history for the past 12 months

• Last two year-ended company balance sheets and income statements

• Most recent interim company balance sheet and income statement

• Copies of previous year’s corporate tax return

The application process provides the prospective funding provider all the information they need to make a smooth transition should you decide to sign with them.

The Transition

Once you carefully review the contract and sign on with the new provider, the transition should be relatively simple.

Your new funding provider will work with your old provider to obtain the information they need, including current aging reports and any buyout agreements.

One important thing you can do to help the transition is notify your customers of their new payment address at least two weeks in advance of the switch. This will help ensure payments are not delayed and are forwarded in a timely manner (saving you valuable time and money).

And that’s about it!

Choosing a new funding provider may seem like a daunting task that involves more details than you want to manage. But a good funding provider will make the transition a simple, seamless process that’s virtually transparent to your employees and your customers.

“…Are there going to be any surprises? Did you ask all the right questions? What business owners and entrepreneurs are very concerned about is if they didn’t ask all the right questions, somebody may not volunteer the right answer, and you wake up with a real problem on your hands.” —Robb Mulberger, President, NRI Staffing

It can be an unknown variable. Once you sign a contract for an important business relationship such as funding for your staffing company, how will that relationship actually unfold? Will everything the sales people told you before you signed the contract come to pass? Or, once you’re on board, does the service you experienced during the sales process become a thing of the past? Most importantly, how can you ensure your expectations are met once you’ve signed the contract?

The sales people were so nice and courteous. Everything they told you about how the relationship would function is exactly what you were looking for in a funding partner. So you sign the contract with high expectations and a hopeful eye on the future.

Then the actual relationship begins, and it’s nothing like you expected.

Besides the obvious part of the relationship that involves actually funding your invoices in an accurate and timely manner, there should be a level of expertise and service that comes along with those services.

Any good funding provider should meet your expectations by:

• Answering the phone when you call. It seems so simple, doesn’t it? You call and a live person picks up the phone on the other end. But how often does this actually happen, or do you get voicemail instead? A provider dedicated to offering top-notch service has people at the ready to answer your calls so you have the information you need, when you need it. Voicemail should be just another option, not the standard.

• Availability of management and team members. When you have an important business decision that needs management input from your funding provider, nothing is more frustrating than not being able to make contact with that person. As a partner dedicated to the success of your staffing company, those top-level management personnel should be accessible to you and respond to your needs quickly.  

• Questions are answered in a timely manner. You need information when YOU need it. Waiting hours, or even days or weeks, to get answers you need can become a detriment to your business and hamper your ability to make quick business decisions. If your funding provider doesn’t know the answer to your question immediately, they should have a policy outlining a reasonable time frame to respond to your request.

How do you know if a funding provider will meet these expectations before you sign? Ask the following questions to help you decide:

• Do they have actual policies and procedures in place to ensure quality customer service? This includes turnaround times for returned calls and answered questions. Having these policies in writing means they’ve made service a priority.

• Can you speak to current clients about their experiences? Chances are, they’ll only have you speak with happy clients. However, asking them detailed questions about the service they receive, and any issues they’ve had and how they’ve been resolved, can help you better understand if the level of service they describe meets your expectations.

• Can you visit your prospective funding company’s offices? Any good funding provider should offer this as an option before you sign. When you meet in person the people you’ll be working with, you can get a sense of their level of industry knowledge and commitment. Ask for the full tour. Ask how long people generally stay in their positions and their level of turnover.

Once you sign with a funding provider, the only surprises you should experience are pleasant surprises. If that’s not the case, it may be time to move on to a provider who better meets and exceeds your expectations.

For the longest time, there was a stigma attached to asset based lending and those companies that used it. It was for companies with bad credit, strapped for cash, and unable to get funding from traditional sources such as banks.

Not anymore.

Are You Looking to HIRE?

By Julie Ann Blazei
President/ CEO Tricom Funding

One of the hallmarks of the recession is the number of unemployed workers throughout the U.S. These numbers have reached new highs, the likes of which many of us have not seen in our lifetime.

As an attempt to encourage businesses to put unemployed people back to work, on March 18, 2010, President Obama signed the federal Hiring Incentive to Restore Employment Act (HIRE Act) into law. The HIRE Act adds two new tax benefits for employers as an incentive to employ laidoff workers. All employers, except certain government employers, may be eligible for these tax benefits.

Brace Yourself: SUTA is on the Rise

As unemployment numbers continued to climb throughout the recession, states saw their unemployment trust funds stretched to the limits. Many states (28 in total) have resorted to borrowing from the federal government to pay for the surging number of claims. Not only will this money have to be paid back with interest, the trust funds themselves will need to be replenished.

Not all funding providers are the same. As in any industry, there are good companies and there are not-so good companies. It’s imperative for a staffing business that’s in a funding relationship—or considering entering one—to discern the difference.  

It’s been said that when times get tough, you find out who your true friends are. They’re the ones that stick by you and do what they can to see you through. You quickly learn whom you can rely on, and who’s just in it for convenience or selfish reasons of their own. 

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

Shelly Wilkinson, Director of Sales/Marketing for Tricom Funding, recently participated in a radio interview with the North Carolina Association of Staffing Professionals.

MILWAUKEE, Wisconsin (November 19, 2009) - Tricom Funding is pleased to have been a major sponsor of the 32nd annual Briggs & Al's Run & Walk for Children's Hospital of Wisconsin, held on Oct 10.