Payment Terms

Cash Struggles – The Global Recruiter

Contract work may be on the rise following the Covid pandemic, but freelancers still have to wait three times longer to get paid than full-time staff as businesses grapple with cash flow and payroll issuesStudies show.

Provider of on-board financing and payment solutions, Sonovate, found this 53% of everything small and medium enterprises (SME) currently use or have used subcontractors – with this figure rising to 81% just looking medium enterprises. However more than a quarter (27%) SMEs admit taking more 90 days to pay their contract staff – three times longer than the average working time for permanent employees. Surprisinglythis figure rises to 37% in medium sized companies (50-249 employees)who are often should have more predictable cash flows and therefore be able to Craft more regulartimely Payments.

The investigation of 500 elderly people Company makers* found this about three out of ten (28%) cited cash flow as a top reason for slow payments (rising to 33% among midsize businesses), while a further 62% said these cash flow issues were caused by the knock at effect of late payment of their suppliers and clients. Another 28% said that problems with pay systems prevented them from paying contract workers on time.

Although the companies surveyed saw a clear need for skilled contractors, four out of ten (39%) acknowledged that failing to pay on time could rob them of quality talent and a quarter (24%) said they had lost contract workers because they were unable to pay them rapidly.

The global concert economy is expected to reach $455 billion by 2023*, youClearly there is a need to improve access to finance, and therefore cash flow, to help businesses pay and retain staff. by Sonovate platform uses the last developments in finance, such as Open Banchoring, allow recruitment companiesadvice and work marketplaces to integrate financing solutions who ensure casual workers get paid on time, while employers benefit from longer payment terms. This means businesses of all sizes can benefit from access to skilled workers, regardless of their cash flow or salary constraints.

Richard Prime, co-founder and co-CEO of Sonovate, said:Ddespite in recent years, accelerating the number of workers freelance or contractthey or they are regularly to be paid late who is not sustainable for many people – especially now.

We know contract workers are the future of the UK workforce, but with the Cost of life crisis in mind, 90 days is fair absurdly long to wait for payment. Against the tea backdropis crisisthis is essential that bcompanies have access to solutions that support them at to offer fairer and faster payment throughout the labor supply chain.

The Sonovate platform offers flexible financing and a tailor-made technological platform for streamline and automate Tasks relative to financing and management contract worker placements and independent projects. It helps recruiters, consultants and workers marketplaces release money and resources, allowing them to focus on growing their business in the UK and internationally.