The Buffalo News recently ran a story about how the economy and late payments are hurting small businesses. In the article, it states….
“Diana Ennen, owner of Virtual Word Publishing, a publicity firm based in Margate, Fla., said she first started seeing a slowdown in payments about six months ago.
“In the last four months, itâ€™s gotten really bad, and almost at a critical point,â€� she said.
Ennenâ€™s late payers tend to be people who work as independent contractors for companies which, because of the uncertain economy, suddenly decide to end the relationship. The independent contractor isnâ€™t getting paid anymore, and in turn is having a hard time paying Ennen.
When clients are behind, Ennen said sheâ€™s careful about how much new work sheâ€™ll do for them.
â€œI try not to get too far in advance, and I have to see some payment,â€� she said. â€œYou canâ€™t do a lot of work now and hope the payment will be there.â€�