>>“net 90” payment term on freelance employees beginning in June, meaning the company’s freelancers will be paid just once every three months.
Net 90 doesn’t mean they only get paid every 90 days - net 90 means they wait 90 days for their first check, and then, assuming they bill every month, the rest of the checks come 30 days apart.
Yes, but if you work today, and submit the invoice tomorrow it will be Labor Day before you are paid. Yes, then the cycles is regular. But can yo go two months of working without getting paid. Yes, many people can—but without notice it would put a dent into your budget. And freelancers DO budget.
In the 1980’s it meant that we are investing our cash at high rates rather than paying you. I worked on the Gulf Western conglomerate cash flow system. We only deposited funds when the checks cleared per the days Fed Letter to take advantage of maximumfloat..
In today’s low interest environment it means “cash flow problems.”