To succeed as a staffing firm, you need a strong bond with your funding company. But what if you’re in a toxic relationship and don’t even know it?
Just like with a romantic connection, the flaws might not be immediately obvious. You might feel happy most of the time — only to find your partner isn’t there when you need them. It’s important to spot the red flags before you give your trust to the wrong person. Or, in this case, to the wrong financial partner.
With that in mind, here are the top five signs that your staffing firm should consider switching funding companies:
Five Signs It Is Time to Find a New Funding Company
#1 Your Financing Costs Are Too High
With the policymakers doing everything possible to support the economy in the wake of the COVID pandemic, borrowing costs have fallen to multi-decade lows. Does it feel that way to you?
Even with interest rates sitting at extreme lows, not every company can take advantage. Traditional lending still involves complex and restrictive processes. To get the funds you need, you could end up spending more than you expect.
#2 You Don’t Get Personal Service
As we’ve said, financing is about relationships. Borrowing money doesn’t work the same as buying a product. It requires an ongoing connection, with any funding agreement taking place over a period of time.
Meanwhile, you should find a funding partner who will stick with you for the long haul. You want someone you can contact in emergencies or when you find a glaring opportunity.
Bottom line: you need personal service to get the most out of your financing options. If you’re not getting it at your current provider, you should begin looking for a replacement.
#3 You Miss Opportunities Because of Slow Processes
The modern economy stays in constant motion. It represents a 24/7/365 endeavor. Opportunities arrive in an instant — and can often disappear just as quickly.
Is your bank built to optimize this environment? Probably not. That’s where we get the term “bankers’ hours.”
Don’t get bogged down by the slow pace of most funding providers. Too much paperwork and too many delays can force you to miss chances to expand your staffing business.
#4 Promises Aren’t Kept
The details matter when it comes to funding. You need to trust your financing company to deliver on every stipulation. Misunderstandings can cause significant damage.
You need a funding company that has the scale and experience to give you the support you need. That way, you can count on them as allies as you look to attack the market.
#5 The Funding Company Doesn’t Understand Your Business
The staffing industry has a unique structure. The intricacies matter as you look to protect your cash flows and secure funding for expansions.
Having a partner who understands the market makes it easier to have constructive conversations about financing. You develop a shorthand that speeds the process. A good understanding of the staffing market also lets your financing partners anticipate your needs and be there when you really need them.
Looking for the Perfect Funding Partner For Your Staffing Firm? Frontline Funding is Here!
Are you ready to form a relationship with the perfect financing partner? Frontline Funding gives you the flexibility and understanding you need to take your staffing firm to the next level.
Contact Frontline Funding today to learn more.