Does Change Make You Nervous?

Does Change Make You Nervous?

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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.
 
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