This post was written by Gregg Dourgarian, CEO of TempWorks, a provider of payroll funding services.
How do I know you are posting cash when the check arrives?
Funding companies make money by charging you interest on every day an invoice remains outstanding. If they get payment on an invoice but fail to post it against your account, they get to keep on charging you interest. How can you see when the check is actually received.
Is the relationship transparent to my clients?
You worked hard to create a high-trust relationship with your staffing client. How does it look if suddenly your invoice shows up with your funding company’s name on it?
Why do I have to commit for 12, 18, 24 months?
Your staffing clients can terminate your temps at any time. How fair is it that you can’t terminate your funding contract at any time as well?
Why do you charge 3% of invoicing instead of payroll?
Your grocer charges you by the pound for bananas – you don’t pay for the tree or roots do you? So why does your payroll funder charge based on invoice amount instead of the cost of your payroll being funded?
Are you affiliated with any entity that is in the staffing biz?
Is your payroll funder also a competitor?