The Hidden Benefit to Paying Contractors in 30 Days
Internal processes, red tape, and backlogged accounting departments make it hard to get checks in the mail. We definitely understand. Even when a practice is common among other companies, a slow corporate freelance payment policy might prevent you from working with the best people.
Paying Contractors On Time Is Good For Companies
We know that keeping workers happy can be a pain the arse. Still, like many things, a different perspective makes all the difference. Top contractors get booked quickly. When you pay contractors quickly, they’re more likely to answer your calls and ramp up your projects in a short amount of time. 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. Paying later than your competition can get you blacklisted or moved to the bottom of a contractor’s long to do list. The true pain is having to go through the entire process of finding someone who is a good fit and bringing them up to speed just because your tried and true contractors have prioritized other companies.
If the benefits to you aren’t enough, think about it from the workers’ perspective. Freelancers single-handedly juggle creative work, billing, marketing, and more. That means the person who sees your invoice in their red column is often the same one you’re expecting to bring their all to your next project. What seems like an insignificant to a big company can have a major effect on a small business’ cash flow.
Don’t Be a Hoarder
Just because many large companies have made it a practice to hoard cash and squeeze small businesses to increase their own bottom lines doesn’t mean you have to follow suit. Not only does it add pressure to those you work with, it’s just not ethical. You may justify it by saying it’s not as bad as the latest headline maker’s illegal and greedy ways, but shady practices of any degree have no place in your business.
The Bottom Line
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 you’ll always be in good standing with contractors. It pays to hire someone with systems in place.
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.”