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  • Invoice Issue (did I overstep?)

    Posted by Aaron Cadieux on July 13, 2011 at 3:39 pm

    Hello,

    I have been having problems collecting money from clients. It has gotten so bad that I have instituded a new policy. Before turning over finished work, I now require my clients to either pay on-the-spot of delivery, or sign a contract. The contract requires payment within two weeks of the delivery date. Failure to pay within the two weeks results in late fees. I have some clients that have traditionally paid quickly, so for those long-term relationships, I don’t require them to fill out the contract. Any new clients, or troublesome clients must pay immediately, or fill out the contract.

    I have a new client who is balking at the contract. He sees it as a personal attack and sign of mistrust. I told him that it’s nothing personal against him or his company, and that it’s simply my policy. He then lectured me about “how the business works” and what the usual wait-time is for vendor payments. I asked him if he gets upset when a rental car company requires him to sign a contract before taking the rental car out on the road.

    Is my new policy unfair? Is it insulting? Is this unorthodox? Thanks in advance for your respones.

    Best,

    Aaron

    Grinner Hester replied 14 years, 9 months ago 13 Members · 15 Replies
  • 15 Replies
  • Aaron Cadieux

    July 13, 2011 at 3:42 pm

    Before I get jumped on for a spelling error, I know it’s “instituted”, not “instituded”. I was typing in a rush.

  • Scott Carnegie

    July 13, 2011 at 3:51 pm

    Every project you do should have a contract or some type of payment schedule in writing. At minimum I will provide a quote/proposal for people with delverables and payment schedules that they will agree to via e-mail, some clients want a more formal contract. Have something.

    http://www.MediaCircus.TV
    Media Production Services
    Winnipeg, Manitoba, Canada

  • Andrew Rendell

    July 13, 2011 at 4:08 pm

    I have a template that I use as a confirmation document which has such things as client contact, working address, invoicing address, and so on (basically so that I don’t forget to get all the information that I need) and on the bottom I have a bunch of T&Cs – minimum call time, cancellation fees and so on. That way no one can claim that I sprung something on them that they hadn’t been informed of at the start.

  • Michael Hancock

    July 13, 2011 at 4:38 pm

    Aaron –

    If he doesn’t sign the contract he pays on delivery. It’s not a matter of trust, it’s a matter of business.

    Watch this (WARNING: Language may be offensive to some – proceed with caution):

    https://vimeo.com/22053820

    —————-
    Michael Hancock
    Editor

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  • Aaron Cadieux

    July 13, 2011 at 4:40 pm

    Michael,

    I didn’t think I was being unreasonable. I was just making sure that this wasn’t an unheard of practice. Thanks for your response.

    -Aaron

  • Mike Smith

    July 13, 2011 at 5:52 pm

    Your approach sounds fine. I’m sure you present it with charm, not sullenness or aggression. That client response feels like a warning flag.

  • Aaron Cadieux

    July 13, 2011 at 5:57 pm

    Mike,

    I simply said “attached you will find blah blah blah . . . Please fill it out, scan and re-attach”. It was very professional, polite and matter-of-fact.

    It makes me nervous that they are so opposed to the contract. To me, that’s basically their way of saying “yeah, we’ll never be able to pay you in the time you require”.

    Thanks,

    Aaron

  • Gary Hazen

    July 13, 2011 at 8:54 pm

    From my experience, net 30 is standard practice in the industry.
    That’s not to say you can’t do whatever you want to do, it’s your business.

  • Walter Soyka

    July 13, 2011 at 9:41 pm

    Is the problem the contract itself, or the terms?

    [Aaron Cadieux] “He then lectured me about “how the business works” and what the usual wait-time is for vendor payments.”

    Everyone tries to bend to cash flow to their advantage. You’re asking for net 14, but I have only one client who regularly pays this fast. I generally specify net 30, but some clients only pay net 45 or even net 60. Most of my clients are agencies or institutions with vendor management policies, and it’s far, far easier to work within their requirements than it is to try to get them to meet mine.

    Walter Soyka
    Principal & Designer at Keen Live
    Motion Graphics, Widescreen Events, Presentation Design, and Consulting
    RenderBreak Blog – What I’m thinking when my workstation’s thinking
    Creative Cow Forum Host: Live & Stage Events

  • Mick Haensler

    July 13, 2011 at 9:46 pm

    [Gary Hazen] “From my experience, net 30 is standard practice in the industry”

    It was until a lot and I mean a lot of people started getting screwed. I just instituted this same policy for new clients only and haven’t had a problem. As a matter of fact, two of my new clients paid me in full right after the initial shoot.

    For my steady on time paying clients, it’s business as usual, net 15 or net 30 depending on our agreement.

    Mick Haensler
    Higher Ground Media

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