News

“They share any information that’s available concerning our business or things that might affect our business. And I think they also are very effective in helping you understand why you need to look at things differently if you’re not looking at them the right way.
- Tanya Henry, Executive Director, Milwaukee Careers Cooperative”

We are constantly on the alert for all the latest industry news, legislative updates, trends and more that could possibly impact your staffing business. Our president and CEO, Julie Ann Bittner, also shares her insights on the staffing industry in her message (link below). And when we don’t see information about a topic we feel is critical for you to know, we create it ourselves to share in our monthly email.

Press Room

Are You Paying More Than You Should For Payroll Funding?

I spoke with a staffing company owner the other day who thought she was getting a great rate that couldn’t be beat.

“Shelly, I’m only paying a .067% daily rate with my current provider. I’m really comfortable with that rate.”

When I pointed out to her that .067% on a daily basis equates to a 24% APR, she wasn’t so confident. And when I further showed her that a daily rate of prime plus 2% was only a 5.25% APR (when prime is 3.25%), she really began to understand her true costs.

Finding the right funding provider can seem like a daunting task. There are many to choose from, but not all offer the same services or pricing structures.

Funding providers offer two types of relationships: Full Service, which includes funding as well as administrative services, or Funding Only. There’s a major pricing pitfall that can impact both types of relationships—it’s important to be aware of the potential traps unique to each.

Full Service

NCASP Radio Interview with Shelly Wilkinson of Tricom Funding

Click HERE to listen to a radio interview with Shelly Wilkinson, Director of Sales/Marketing for Tricom Funding.

Pitfalls to Avoid

By Julie Ann Blazei

Finding the right funding provider can seem like a daunting task. There are many to choose from, but not all offer the same services or pricing structures.

Funding providers offer two types of relationships: Full Service, which includes funding as well as administrative services, or Funding Only. There’s a major pricing pitfall that can impact both types of relationships—it’s important to be aware of the potential traps unique to each.

Full Service

Some Full Service funding providers offer a Tiered Pricing structure—the higher your volume, the lower your rate. This can sound pretty good to a staffing company that’s focused on growth. However, you want to review the terms of a Tiered Pricing structure closely.

Oftentimes the rates are artificially higher for lower volumes. Not a problem if your volume is higher than that tier, right? Not necessarily. A funder may apply the discounted rate only to the portion of your volume at or above the point at which you receive the volume discount. The portion up to that tier is still charged at the higher rate.