Funding Program Setup – Timing Issues
There is wide variation in how quickly payroll funding companies can get a deal done and get you funded. A very few companies can get a deal completed in days. Many of them take two to four weeks. And there are ones that take months (as much as two or three months). Although most companies tend to fall into one of these categories, any company could take longer than usual if you are slow to provide information or if a deal is complex.
If you need to get funded sooner rather than later, be aware that with some companies you could be tearing your hair out waiting for funding. Your first contact with a funding company is usually a salesperson or business development person (often given a VP Title). Many salespeople, trying to do their job, will do all they can just to get the deal in the door for consideration. The deal then moves from the salesperson to operations, underwriting and/or credit committees who often don’t communicate well, or specifically about when (or if) a deal will be approved and completed. More valuable time slips by. The frustrated salesperson, waiting for the deal to be booked and funded, usually has little or no clout in getting it done.
If you are a company that needs to get out of an existing funding contract and move to another payroll funding company by a specific target date, not getting the deal done can have financial or legal consequences. Automatic renewal clauses and early termination penalties are just two of the items that can become trouble if your new funding company can’t get the deal done on time.