Q: What are some of the issues that freelancers face and how does Crema help them?
A: In today’s market, there is no good way for freelancers to ensure a steady income. A big problem for freelancers and independent professionals is getting paid for the work they are doing. Our main differentiator is giving them that stability and making sure that they are actually getting paid.
Q: How does Crema’s platform ensure that freelancers get paid?
A: Our platform allows freelancers to create a gig or project that includes all their expected deliverables and the total amount they will charge for the job. They then set up how they will be paid, either weekly, monthly or with specific dates. We ensure that they get paid because clients input their credit card details and it all runs according to the original schedule.
In addition, the platform generates a contract between both parties. Freelancers usually do not manage contracts because they would need to involve lawyers and incur other expenses. With our platform, contracts are created automatically based on the outlined deliverables and schedules, so the freelancer remains in control of the situation. And if any breach of contract happens, they are covered, and their clients as well. A win-win for both sides.
It is similar to a payroll because you can set up your schedule and when you are going to get paid. That provides stability. If a card is declined or something happens with the payment, the freelancer does not have to worry because it is Crema’s job to contact the client and follow up. We are eliminating a lot of friction that could exist between the freelancer and the client.
Q: What is the profile of the freelancers that Crema targets?
A: It is not our job to help freelancers get a job because there are so many platforms that do that for them. The freelancers that we are targeting are high performing individuals that already have a client base. We help them to maintain and grow their relationships with their current clients by eliminating any friction that might occur.
Q: How does Crema help freelancers with liquidity problems?
A: Crema helps on the business side with liquidity, where if you have an invoice that is not paid
and you did not run it through Crema, we help with our factoring service, which is basically
paying your invoice for you instead of your client paying you. We then recover that invoice from your client and charge a small fee for the service.
We also have services for getting a loan, credit or working capital for freelancers who are
having difficulties with liquidity, or that want to grow their business at a faster rate. This is one way Crema can help its clients during the economic recovery.
Q: When will Crema be open to users?
A: Right now, we do have users in what is called closed beta, which means that you will only have access if you are invited. Crema has about 80 users on the platform, as we still want to implement some other elements in our systems. We are expecting to open the platform to all freelancers who want to try it by mid-February.
Q: What elements make Crema attractive for investors?
A: We just closed our funding round. The freelance market is growing very quickly right now. In 2020, it grew by 16 percent and it is expected to continue growing. The pandemic generated a great many new freelancers, in addition to newer generations who are looking for different ways to make a living, which do not involve 9-to-5 office jobs. They want flexibility and independence to work on different projects all the time.
The solution offered by Crema is unique. Currently, no one else is focusing on helping freelancers get paid. Services such as PayPal are more focused on e-commerce. Our solution is tailor-made for freelancers and this has been very attractive for investors. In addition, the founding team has a great deal of experience developing digital solutions. We have also been freelancers, so we know exactly the problem we are solving.
Q: What is the near-term outlook for Crema and what strategies are you carrying out to attract new users?
A: If everything goes according to schedule, once we open the platform in mid-February, we are going to start attracting new users to our platform. Crema targets freelancers but we also offer benefits to freelancers’ clients. It is a lot easier than any other solution. As a company, you are actually compliant with everything you are doing because there are contracts involved and you can even use a corporate credit card, for instance.
We are building some partnerships with the new corporate credit cards offered in Mexico, where all their clients get an extra benefit for using our services, such as cashback. In terms of freelancers, we are also looking for other partnerships to attract new users. Referral programs are another avenue we are pursuing. We are also generating a great deal of content aimed at helping freelancers throughout their diverse struggles.
Crema is a payroll and easy payments solution for creators, producers and independent professionals. The company aims to help freelancers operate their ‘business of one’ worry-free.