Can You Wait 45 Days For Payment?


When I worked in an hourly position, scheduling REO work orders with nationwide contractors, 30 – 45 days didn’t seem like a great amount of time to wait for payment. But, then again, I was not the one having to wait.

I’d get nervous calls from contractors, both rookies and veterans with the company I worked for, wondering when exactly they would be reimbursed. They would tell stories of losing thousands of dollars to some other company after waiting 30 – 45 – 60 – 90 days for payment.

Being a “contractor” myself now, I have built my company around an average 45 day cycle. Who knows exactly what is going on during that time with the powers that be? When you call, they say, “Your payment is being processed.” When asked to be more specific, they say, “It shows right here on the computer that it’s being processed.”

“Processed” sounds arbitrary.

In the larger picture, I know it is not completely arbitrary. There is somewhat of a process and, fallible as we humans are, in most cases the process has delivered a check to my mailbox. Still, I would like to be an invisible elf in the payment processing workshop, seeing what magical things happen within those 45 days.

I understand that the hiring company has adopted this cycle to give themselves time to generate funds to pay employees in-house, keep the lights on, and pay the other thousands of contractors out there. They are borrowing against the funds they owe me so they can maintain operations. And, bottom line, they have to wait for the people who hired them to pay.

On my end, the only reason I tell my contractors to expect a 45 day payment term is that this is about the time I have to wait to get paid. I don’t hold funds and borrow against them to build my empire. We even set our contractors up on a wire system where 24 hours after the payment we receive has been “processed” (meaning deposited, simple as that), we can wire it to them. Now, that’s a warm fuzzy for any contractor.

“When am I going to get paid?” is the bottom line for contractors. With that in mind, I am always upfront. I encourage questions about the “process” for payment. And, I do everything in my power to make this process very simple.

We keep a close eye on the invoices we send our clients, too. On the appointed day that we originally discussed we would receive payment after a submitted invoice, we send auto-reminders, or call on the phone. If a payment comes later than this typical turn time, we communicate this to our contractors so they can know what to expect.

The more Integrity REO Solutions grows in the industry, the more I find contractors are well acquainted with waiting between 30 – 45 days to be reimbursed. This is just something you have to expect and plan well for financially. Of course, it is a sweet deal when you find those who pay within the same week or biweekly. But, it seems the latter sort is more frequent.

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