Bank Payroll Funding Sign-up Obstacles

Once you are in the door with a bank or bank-owned payroll funding company, the service can be good, however, there can be a painstaking and long process just to get in the door – specifically when you are looking for money only without payroll processing and back office support services. Many bank organizations ask for endless paper, after paper, after paper. The filling out of detailed forms and providing reports, and committee / departmental reviews of those forms and reports may take what seems like “forever” (sometimes months). Banks tend to have a slower organizational structure than privately- held funding companies; everybody in a bank organization is documenting to comply with in-house or external rules and regulations, and multi-level management review. That does not always work well with short-fuse funding needs…be aware of this aspect if your cash situation is short fused.

If your own attorney, trying to protect you, should review the bank funding company contract agreement and find anything that is objectionable (even minor points), know that most banks will not alter their documents for you—especially for brand new customers. It is pretty much a take it or leave it proposition.

After you have long track record with a bank, they sometimes will do accommodating amendments for you. They would be most likely to do this, if at all, when you are a large volume customer and they want to renew your contract.