For small businesses, cash flow is king, queen, and the American dream. While big businesses’ budgets tend to be a little more forgiving, small businesses and contractors have much less room to handle delayed payments or unexpected expenses. That was in the best of times. And then came COVID-19. The entire world simultaneously shut down work, including projects in process, and started delaying bills.
As we all work out the challenges of working remotely, many are shifting more toward hiring contractors. Treat them right and it’s a win/win.
When you pay contractors quickly, they’re more likely to answer your calls and ramp up your projects quickly. For busy department heads with big projects and short turnaround times, there’s nothing better than diving right in with tried and true creative partners. Saving time, money, and hassle by working with people who just get what you’re looking for is priceless.
Pay contractors quickly or risk losing them
Internal processes, red tape, and backlogged accounting departments make it hard to get checks in the mail. We definitely understand. Unfortunately, your corporate freelance payment policy might prevent you from working with the best people. Top contractors get booked quickly. Paying them later than your competition can get you blacklisted or moved to the bottom of their long to-do list.
Put yourself in their shoes. Freelancers are single-handedly juggling creative work, billing, marketing, and more. That means the person who sees your invoice in their red column is the same one you’re expecting to bring their all to your next project. What seems like a small invoice to a big company can have a major effect on a small business’ cash flow. Net 90 is a common practice for large companies. But even though a lot of people do it, that doesn’t justify the shady practice.
Hire someone with systems in place
Paying contractors quickly is worth the investment. If it’s not feasible to transform your internal process, get a partner involved. You get the peace of mind of knowing that you’ll always be in good standing with contractors. With PayReel, you also get the bonus of pre-vetted workers who are always available at a moment’s notice.
Hiring contractors is a beautiful thing: It gives you a fresh perspective and talent without having to bring on full-time team members. Just make sure you do it right. Going from Net 90 to Net Now will save you time, keep you in good standing with contractors, and ensure you can feel good about the way you do business. Rather than trying to save Benjamins up front, take Benjamin Franklin’s advice and “Wrong none by doing injuries, or omitting the benefits that are your duty.”