Businesses need investors to succeed and grow. Some startups found some success without an investor, but it was a long and difficult road for them.
Investors provide companies with much-needed capital. They also offer guidance and expertise. It’s why companies should do all they can to build a strong relationship with them. One way of doing this is to use a good stock transfer agency.
What is a Transfer Agency?
A stock transfer agency is a financial services firm. They manage and keep track of registered shareholders. They do this for businesses that issue stock certificates. Their transfer agents manage company records. They also do reporting and handle communications between corporations and their shareholders.
Transfer agency services are a crucial element of the investment fund industry. It’s because they act as the link between a corporation and its investors. They protect the interests of both parties. They do this by keeping on top of SEC regulations. They also decide on the right course of action for their clients.
What Should You Look for in a Stock Transfer Agency?
Transfer companies have many functions. This includes but is not limited to ensuring SEC compliance. They also process stock splits and manage shareholder meetings. They can also issue or cancel stock certificates and transfers.
Their tasks make it imperative for a company to work with the right transfer agency. Your choice of transfer agent will affect the quality of service you experience. It also impacts investor satisfaction and their view of your company.
The good news is there are signposts you can follow. Here’s what to look for when choosing a transfer agency.
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Dependability Honed Through Experience
The best stock transfer agency is one that’s steadfast and dependable. This often comes through experience. Make sure you choose an agency that’s been in the business for years. Ask about their experience. Check that they’re registered with the SEC. Double-check if they have had any SEC complaints filed against them. You want a company that follows strong ethical business practices.
Transfer agency services with experience under their belts also have the right knowledge. You should discuss their track record about asset class and fund structure. Experience also means technological know-how to back them up. A good agency will have the systems and services you need to empower your company. This could mean robust integrated services. They should also have effective reporting tools and data services.
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Responsive and Attuned to Your Needs
You should choose a transfer agent partner that reflects your company’s philosophy. They work as an adjacent team to your company. It’s why you should look for an agency that’s responsive and attuned to your company’s values.
Investors and finance advisors all have demands and expectations. A reliable transfer agent firm handles them by facilitating your fund’s operation. They do this by having good systems in investment processing. They should also do financial and sales reporting. They must also be good at producing tax documents and audit support.
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Scales Up with You
Expansion is the goal of every company. They do this by generating a high investor count and expanding their assets. They can also use new fund structures or find extra funding.
These changes mean more demands placed on a transfer agency. You want a company that’s prepared to scale up to the level of success you’re working towards. You should look for an agency with a versatile fund accounting system. They should have the right operational experience and enough transfer agents.
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Offers the Services You Need
Transfer agent services differ per company. Some transfer agencies specialize in crowdfunding while others are tops at being proxies. Do you need help with DTC eligibility or issuing dividends? You need a company that offers the services you need. That’s why you should do your due diligence before making a choice.
Working with the Best
The finance industry is fast and dynamic. You need a transfer agency that can move with the times. You need Legacy Stock Transfer. We can keep up with everything. Our company has been in the business since 1996. We’ve provided countless happy clients with premier transfer agent services since then. We offer customized stock service solutions. Our team of expert transfer agents can issue new certificates. They can also maintain shareholder records. We also offer DWAC/FAST services. Give us a call at 972-612-4120. You can also send us a message at info@legacystocktransfer.com.