Starting a Staffing Agency: How to Choose a Payroll Funding Company

Top Considerations for Choosing Your Invoice Factoring Partner When Starting a Staffing Agency

Starting a staffing agency or growing your firm is an exciting venture, but it also comes with its fair share of challenges. One crucial aspect that can make or break the success of your agency is choosing a reliable and trustworthy invoice factoring partner. With so many options available, it can be overwhelming to know where to start. Read on for the top things to consider when selecting a factoring partner for your staffing agency.

Competitive Rates: What to Look For

As a staffing entrepreneur, it’s essential to have a clear understanding of the rates and fees associated with invoice factoring no matter what growth stage you’re in. When researching potential partners, don’t be afraid to reach out and inquire about their pricing structure. Look for firms that offer competitive rates and transparency about all fees. You should also be wary of “red flags” such as hidden fees or an unclear pricing structure that could negatively impact your agency’s profitability.

Tim Sardinia, our Executive Vice President, shares his insight on what can influence factoring rates and how costs compare to bank funding. Watch his video here.

Good Reputation: Why It Matters

There are many funding partners to evaluate when starting a staffing agency, so you may not know which one to trust. New and established firms should both do their due diligence and research the potential partner’s reputation. Look for indicators such as membership in professional organizations, a solid company history and positive reviews on platforms like Google.

The leaders at Encore Funding are well-known in the staffing industry thanks to decades of excellent business practices, success and integrity. Encore Funding is fortunate to be in an incredibly solid financial position, especially during a period of regional banking uncertainty and a high interest rate environment. Our financial position and network has helped both new and growing staffing firms overcome financial obstacles and connected them to other impactful industry contacts.

Flexibility & Speed: Crucial Factors When Starting a Staffing Agency

In the fast-paced world of staffing, flexibility and speed are crucial factors to consider when choosing a payroll funding partner. Look for a company that offers flexible contract terms, quick funding turnaround times and a high advance rate. Additionally, any factor you evaluate should make it clear that funding is based on your customer’s credit strength, rather than your agency’s profitability.

When it comes to reserve account distribution, time is money, so look for partners who release funds immediately upon receiving your clients’ payments. At Encore, we’re proud to offer fast funding that helps your business grow.

Direct Funding Source: What It Means

This may sound obvious, but it shouldn’t be overlooked. It’s important to choose a payroll funding partner who actually has the cash your business needs. Working with a funding company who outsources the funding, or who relies too heavily on borrowed funds may be too beholden to outside influence. This could result in you working with a funding company that has limited capacity to help you with issues or control over decision-making on your account.

Your interests are aligned with your funding partner. If you grow, your funding partner does better. Encore Funding is privately owned and funded, which means we have the capital to support your agency’s growth and success. This provides more stability and security as you’re starting a staffing agency and beyond.

Strong Customer Support & Other Services: The Importance of Partnership

Your factoring company should be more than just a funding source. Look for companies that offer dependable customer service and additional services, such as back-office solutions to help streamline your operations. This can enhance your overall experience because you can gain vital support and funding all in one place. Encore Funding offers back-office support and strategic consulting in addition to invoice factoring to support you at every stage of growth.

Starting a Staffing Agency: Strong Partners Make the Process Smoother

Whether you’re starting a staffing agency or moving into a growth stage, it’s a big decision to choose a payroll funding company. The Encore Funding team has decades of staffing industry experience and is passionate about helping you achieve your version of success. Our team wants to learn more about your growth goals – schedule a free 15-minute consult here! We look forward to meeting you.