With data from over 165 existing firms, we found that the average consulting firm pays their contractors in 27 days, with some firms taking as long as 60 days. That is a long time to wait for payment, even if you can afford to do so.
However, what is even more concerning is the fact that this duration is typically a direct indicator of how much credit risk you might be unknowingly taking. In most cases if a firm cannot afford to pay you until they get paid, then they cannot afford to pay you, if they don’t get paid! Even worse, we have seen multiple cases of consultants not getting paid by a firm because the firm they were working with had a different client that did not pay their bills, thus bankrupting the company and taking everyones hard earned money with them.
At RigUp, you always have the ability to be paid in less than 5 business days. In some cases, our clients require that they first verify a job-sheet before we can release payment, which can delay our ability to process payment by a couple of days.
We are able to pay consultants and then wait to get paid through extensive credit facilities that are tailored to provide 100% credit security back to you.