How Early Payouts are Transforming Contingent Workforce Platforms

The rise of the contingent workforce has reshaped the way companies engage talent. More than 40% of U.S. workers now participate in alternative work arrangements - whether as freelancers, temp workers, consultants, or independent contractors. For enterprises, this model offers agility, cost savings, and access to niche skillsets. For workers, it delivers flexibility and independence.

But for the platforms that power this economy - whether they’re staffing marketplaces, vendor management systems (VMS), or employer-of-record providers (EOR) - the promise of flexible work runs into familiar challenges around cash flow management.

Enterprises often operate on net 30-90 day payment terms while workers and suppliers expect to be paid in real time. 

Platforms sit uncomfortably in the middle, left to either float payments (and absorb credit risk) or enforce “pay-when-paid” models that damage trust and user experience.

The Cash Flow Mismatch in Contingent Work

While the contingent workforce is often discussed as a single category, the reality is that the ecosystem is made up of different types of platforms with very different payment flows and risks. 

A freelance marketplace doesn’t operate legally like an EOR, and a VMS doesn’t share the same challenges as a staffing platform. Yet all of them face the same fundamental problem: aligning payor net terms with worker expectations for immediate pay.

Each category runs into the same three issues:

• Employers - especially at the enterprise level - often require net 30-60+ day terms to align with procurement or budgeting cycles.
  
  
• Contractors and SMB Suppliers simply can’t afford to wait multiple months to be paid after providing services and need faster payouts.
  
  
• Platforms, sitting in the middle, are expected to facilitate these payment flows and alleviate working capital pressures on both sides of the value chain with minimal balance sheet exposure.

OatFi solves this by embedding working capital tools at the point of payment, enabling platforms to offer extended terms to employers while paying contractors immediately.

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The Case for Embedded Credit: Employer of Record / Agent of Record Model

EOR / AOR platforms - like Remote, Deel, or Papaya Global - act as the legal employer or contracting entity. The EOR / AOR is responsible for paying employees or contractors on behalf of the employer client or contracting entity, and absorbs the risk of non-payment in the case where it has paid the contractor ahead of receiving funds from the client.

The EOR / AOR quickly becomes a lender without signing up for the role, unless all payments are facilitated on a more conservative “pay-when-paid” model. Oftentimes, larger clients will use their leverage to pay the EOR / AOR on net payment terms while expecting that talent is paid ahead of the client disbursing funds to the payments partner. 

Fortunately, OatFi is feature-fit to solve this working capital problem.

Where OatFi’s Working Capital Comes In:

For the Platform (EOR/AOR):

• Working capital float: Fund contractor or supplier payments instantly while awaiting employer reimbursement.
  
  
• Predictable cash management: OatFi provides upfront credit so platforms can scale without strain on their balance sheet.
  
  
• Revenue expansion: Monetize payments at no additional cost to the platform.

For the Employer:

• Extended payment terms Pay contractors on industry-standard terms.
  
  
• Budget flexibility: Match invoice timing to internal AP cycles.

For the Contractor / Supplier:

• Early payouts (e.g. instant, weekly) drives trust and loyalty.
  
  
• Liquidity access allows for the ability to grow their business.
  
  

Why Oatfi?

For contingent workforce platforms, embedded credit isn’t just a feature - it’s a strategic advantage. It enables platforms to:

• Win larger enterprise employers with flexible net terms
• Improve customer retention through reliable, faster payouts
• Unlock new revenue streams by monetizing payment flows

OatFi is purpose-built for platforms operating in the flow of funds, providing the infrastructure + capital to facilitate transactions across B2B payments. With OatFi you can:

• Provide instant access to working capital 
• Fuel your credit program with a single set of APIs
• Access OatFi’s flexible capital platform to achieve best-in-class economics
• Fully own the UX/UI to build the best experience for your customers

As contingent work becomes a core part of the global labor model, the platforms that facilitate access to working capital will define the category. OatFi provides the modern credit infrastructure to launch and scale your credit program.

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