Independent contractors now represent a huge sector of the labor force. Differing from gig workers who may only use a side job to make extra cash, these contractors are true entrepreneurs—many who are operating their own business or LLC for the first time. As such, they often have to front their own money to get their business up and running.
Think of grocery delivery drivers paying for gas without being reimbursed for several weeks, or online creators purchasing camera equipment before they've monetized their videos. Though these two roles may seem very different, they have one thing in common: They need improved cash flow. If your platform utilizes independent contractors of any kind, paying them faster is crucial.
The benefits of faster contractor payments
Paying contractors with outdated methods such as paper checks or ACH simply won't cut it for people who are reaching into their own pockets to strike out on their own. By switching to technology that enables faster contractor payments, both your platform and your independent contractors can benefit. With faster contractor payments, you can...
1. Attract more talent
Faster contractor payments give you the advantage you need to stay competitive in today's tight labor market. You can differentiate yourself from other platforms by offering your instant payouts after job completion. That delivery driver who drops off groceries can access their earnings whenever you make funds available—even nights and weekends—instead of waiting several days for money to hit their account. This improved cash flow helps them reinvest in their business and feel more motivated.
2. Keep contractors loyal
Due to the growth of the gig economy, there are now more options than ever for contractors looking for work. They can easily switch from one platform to another if they're not satisfied with their pay cadence. Equally as important as attracting new contractors is keeping those existing contractors loyal to your platform. Prevent your contractors from looking elsewhere by offering the benefit of faster payments now.
3. Spend less money
It shouldn't cost money to send money, but many outdated payment methods are as cost-intensive to your bottom line as they are time-intensive. Finding free technology that enables faster contractor payments can eliminate those costs and allow you to invest that money in other areas of your business.
4. Manage scalability as your business grows
As your company grows, outdated payment methods don't scale very well. Nor do custom-built solutions, which create additional work and hassle for you. Sending faster contractor payments with modern payments technology can help you prepare for rapid scalability that could come at any moment.
If you’re interested in adopting a solution to help you pay contractors faster, retain more of your workforce, and help your business grow into the future of payments, Branch is here to help. Our solution allows you to pay contractors instantly, without the fees and constraints of ACH. Faster, easier contractor payments are going to be table stakes in 2022. Are you ready?