-
What are your terms for payment?
-
[Richard van den Boogaard] “I use 14 days as payment term. I do this on purpose. Remember, YOU are the supplier, so YOU and only you set the payment terms.”
Yes, you can set the terms. But it’s not always possible to get clients adhere to your policy. In fact, you say….
[Richard van den Boogaard] “Most of my clients actually pay within 30 days”
…so even though you set the terms at 14 days, sounds like few of your clients actually adhere to it.
None of us want to be the bank. But unfortunately in these times sometimes we have to be… a little. If we don’t, the clients will simply go somewhere else. Especially with bigger corporations, you simply can’t strongarm them into paying fast. If that’s what you insist on, they will simply go somewhere else.
Even though I don’t like to, I can “be the bank” for 30… but 60, 90, or 120… ummm no. We can’t.
T2
__________________________________
Todd Terry
Creative Director
Fantastic Plastic Entertainment, Inc.
fantasticplastic.com
-
[Ronald Lindeboom] “h, and I’d charge him a penalty for being such an idiot.”
We have an idiot clause in all of our contracts. It clearly states “If you are an idiot, and you know if you are or aren’t, please add 10% to all payments.”
Mick Haensler
Higher Ground Media -
Hi Todd,
You misunderstood my strategy. I quote 14 days and usually get paid within 30, which is fine with me. However, once they’re running late after that, I can point them to a longer overdue date than if I would have given them 30 to begin with. An invoice which is 45 days overdue makes more impact than one that’s only 30 days late.
True, these days a lot of companies are stretching their cashflows. Some even go upto 90 days. I make a habit out of chasing them as soon as they’re running late. Not only through my automated billing system, but also by calling them. They don’t like that.
I still find it strange that some of you mention fear of clients going elsewhere. I am not afraid that clients will walk because of too stringent payment terms from my side. If and when they do solely for that reason, they’re not the type of clients I want to work for, because then obviously I’ve not given them enough added value from the work I do for them.
Richard van den Boogaard
Freelance cameraman • Glidecam Operator • Editor • YouTube expert -
Although a handshake is a perfectly acceptable way to do business, I always confirm things in writing and ask them to agree on this. That way, at least you have some form of legal proof. Without it, you have nothing.
This not only applies to the terms of your job, but also to the changes that need to be made to your edit, etc.
Richard van den Boogaard
Freelance cameraman • Glidecam Operator • Editor • YouTube expert -
[Richard van den Boogaard] “Although a handshake is a perfectly acceptable way to do business, I always confirm things in writing and ask them to agree on this. That way, at least you have some form of legal proof. Without it, you have nothing.”
A handshake is absolutely NOT an acceptable way to do business any longer. It SHOULD be because I was always taught your word is your word, but I just finished a lengthy lawsuit that resulted from a handshake with someone I’ve known and trusted for about 6 years.
Gotta have EVERYTHING in written form and signed BEFORE you start any work. I just put a stop to a project two weeks ago when the potential client refused to sign a production contract. He said it was important to get the pilot finished and series funded first, then we would work out the details. Nope, not going to happen. I really don’t need to sue anyone else that quickly.
As for the original question, my terms are Net 15.
Walter Biscardi, Jr.
Editor, Colorist, Director, Writer, Consultant, Author, Chef.
HD Post and Production
Biscardi Creative Media“Foul Water, Fiery Serpent” Winner, Best Documentary, LA Reel Film Festival.
-
Agreed. I was just saying that from a legal POV, a handshake suffices still. But is it smart? Hardly…
Get things in writing before starting your production is sound advice.
However, we should not forget that doing business is both contact AND contract. If you focus too much on the legalese you tend to loose sight of what it was you were trying to achieve together.
Richard van den Boogaard
Freelance cameraman • Glidecam Operator • Editor • YouTube expert -
net 30 is the national norm unless otherwise stipulated. I seldom stipulate anything. If I smell a rat, I flee before a hassle starts. If I am comfy, there is no reason to bring it up. I’m kind of simple like that. Does that mean some stretch it to net 60 or beyond? It does. Do I mind? naaaa. I’ve found it’s the best way to save money.
-
So after reading these posts I have a question. I recently did work for what seemed to be a legitimate client based out of New York. They’ve got a website up with a lot of projects and focusing on the well being of society, but for the past 45 days have been getting the run around with their HR department about 1099 forms and what not. Anywho, i’m now wishing i would have signed a contract prior to the production. so..
A. Does anyone have an example of a production form that best fit the terms of agreement
B. Is there a site where we can list clients that don’t pay out?
-
[Andy Morin] “A. Does anyone have an example of a production form that best fit the terms of agreement
Statement of Work
What you will do
How much you are charging
Payment Terms
What is not includedB. Is there a site where we can list clients that don’t pay out?”
Best not to air your dirty laundry in public.
Mike Cohen
-
It is for their help only merchant cash advance providing companies emerged on the scene. Their services are quick and best. Although they have high rate of interest even then small business owners are availing their services.
Reply to this Discussion! Login or Sign Up