- December 12, 2019
- Posted by: IMFB
- Category: Blog
One way to guarantee a positive relationship with your contractors is paying on time. Paying on time shows that you appreciate their work. If you want contractors to continue working with you, you should offer a competitive rate and send payments before the invoice deadline. Here are a few ways to make sure you’re always making payments quickly, so your contractors continue working with you:
Make an Invoice Request
In a perfect world contractors would send invoices in a timely manner. If invoices are coming in sporadically, contact the contractor to request the invoice. They’ll be thankful you’re willing to pay quickly and it may prompt them to set up a recurring invoice in their bookkeeping system. This way you both can ensure that invoices are getting sent and paid as quickly as possible.
Read the Payment Terms Carefully
Payment terms can be different from one contractor to another. Some contractors may want you to pay upon receipt of the invoice, and other contractors may give you 30 days to make payment. Follow the rules to keep contractors satisfied and motivated to work with you. You don’t want to have to find a new assistant, social media manager, or designer because you consistently pay invoices late by mistake. Receiving payments late from clients gets frustrating, and contractors may look for other business opportunities that offer prompt payment.
Ask for Payment Preferences
If they don’t make instructions clear, go the extra step of asking contractors how they want to get paid. If you’re using a site like Fiverr or Upwork, you make payments right through the website. When you hire a contractor independently, you need to send payments in another way. They may suggest PayPal, or you may have the ability to send ACH transfers.
Due has low-cost debit and credit card processing as well with no hidden fees. To speed up payment, you can suggest that your contractor explores online payment options. It can make life easier for both of you.
Answer Invoice Follow Ups Quickly
If you miss an invoice, make sure to respond to invoice follow ups from the contractor. Don’t ignore the emails even if you’re not able to make payment right away. Explain the hold up if you’re having cash flow issues or you simply forgot to pay. Contractors appreciate the honesty. There’s nothing worse than thinking you’re getting stiffed by a client because they won’t respond to emails about an invoice. At least give the contractor a payment timeline so they have some idea of when to expect money.
Paying invoices on time is good business. Contractors do the work, and they expect to get paid. Paying competitively and on time can keep your relationship with contractors strong. Contractors who do great work can be great for your business. You can’t handle everything by yourself. Working with good people can take you to the next level. And if you want them to stick around, you’ve got to be a responsible payer.