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Payment Terms
show user profile  Jock
Anyone else coming up against this...

Basically over the last 2 months I've had some new clients but 2 of which are wanting payment terms of 60 days from the end of the month which is effectively, depending on when you invoice, you could be talking 90 days. On top of that two existing clients have been hinting at something similar.

90 days just seems a bit crazy to me, youre talking about 1/4 of a year before payment.

You know what, I dont get this whole way of doing business where theres any days at all. Surely it should be as simple as you do the work you get paid. I know its a very simplistic way of looking at it, but the only person who seems to be at risk is the poor mug waiting 90 days because especially in this climate, businesses are going under and when they do, you dont get a penny back. Having learned that the hard way.
read 532 times
9/17/2012 10:10:48 AM (last edit: 9/17/2012 10:10:48 AM)
show user profile  zeefusion
Some of my clients take up to 6 months to pay. Although not ideal but you have to put up with it otherwise risk of loosing the work.

I have also had no consistency either. A client one time paid in 45 days then another in 120 days and then another in 20 days. Just make sure you get enough small work in where clients usually pay quicker to cover in between getting paid big.

Its not professional I don't think to start nagging clients for money unless they have signed and agreed to your terms. Which in itself is impossible some times to implement.
read 525 times
9/17/2012 11:20:26 AM (last edit: 9/17/2012 11:20:26 AM)
show user profile  Jock
I used to be far more lenient and didnt chase but as mentioned I got stung pretty bad with two different clients who built up a lot of debt then eventually after chasing every day for months, went under and lost the lot.

So recently I have been nagging more and i do understand it might be counter productive, but then whats the alternative.
read 516 times
9/17/2012 11:27:18 AM (last edit: 9/17/2012 11:27:18 AM)
show user profile  Mr_Stabby
delayed payment is useful for juggling taxes, usually people are willing to pay up right away if you offer to book them when they fancy somewhere down the line, communication is key!

read 505 times
9/17/2012 1:09:56 PM (last edit: 9/17/2012 1:09:56 PM)
show user profile  reeves1984
60 is pretty normal, though it is silly.

--
Simon Reeves


www.simonreeves.com - VFX Artist & Blog
twitter


www.analogstudio.co.uk <-- I work here

read 493 times
9/17/2012 1:32:53 PM (last edit: 9/17/2012 1:32:53 PM)
show user profile  Jock
Of course the other problem is that you probably wouldnt be as bothered if you knew the companies would actually pay up before the 60 day terms but I know fine well, with most i'll still have to chase it and they will go overdue.

Luckilly I also have some clients who pay like i do, and make the payment hours after the work is completed.
read 489 times
9/17/2012 1:56:15 PM (last edit: 9/17/2012 1:56:15 PM)
show user profile  ScotlandDave
Yeah i think it`s normal for some companies. I`m nearing the end of a job where the advance payment hasn`t even been met yet, but it`s a very large company and is more an issue with the finance department ( or so i`m told as technically i`m third party ). Up to 50% deposits actually happen too i`ve heard. Have considered this idea which i`ve heard elsewhere - basically charging interest on overdue payment.. So for every day late, there`s a percentage increase. Sounds harsh but so`s getting stung and so`s chasing people for money when at the back of your mind you`re not sure if you`ll get it..



Website | Blog | Contact | Vimeo

read 470 times
9/17/2012 3:01:49 PM (last edit: 9/17/2012 3:01:49 PM)
show user profile  npcph
would it be professional to say 20% down with the rest due in 60. then atleast you have something at the beginning.

read 456 times
9/17/2012 3:47:58 PM (last edit: 9/17/2012 3:48:19 PM)
show user profile  reeves1984
50% upfront (and then not quite upfront, but late) is normal too ya!

--
Simon Reeves


www.simonreeves.com - VFX Artist & Blog
twitter


www.analogstudio.co.uk <-- I work here

read 452 times
9/17/2012 3:51:32 PM (last edit: 9/17/2012 3:51:32 PM)
show user profile  advance-software
you don't get what's "normal" you get what you negotiate.

arrange payment terms before you start work.

if they want to pay late - either agree to that or refuse to take the job.

if the terms just shaft you, you'd be better off not doing it.

look into invoice factoring if you need the money early - maybe ask them to pay a surcharge if they want to pay late to cover your costs & risk.

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073924180

read 451 times
9/17/2012 3:56:59 PM (last edit: 9/17/2012 3:58:51 PM)
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