My hat’s off to you for insisting on the big deposit/final payment before releasing tapes. I don’t do that, and have gotten burned, though only twice. When clients have either failed to pay, or paid late, it has not been the loss of money that has been damaging, but rather the distraction and hassle of going after the money. I sympathize, but I wonder if in part the client was getting back at you for insisting on COD. It doesn’t sound as if they were angry at you; I would suspect internal corporate politics has more to do with it. (“Why’d we spend so much money shooting all that video??” “I’ll show ’em! I won’t pay the last invoice!”)
But I’d like to confess something that seems extremely wimpy, compared to your method: Usually I just bill the client when the job is done. No advances, except for out-of-town travel and lodging.
For bigger projects, I usually obtain a 30-30-30-10% schedule of payments (to start treatment/script, start shooting, start editing, and when the job is done). But for bread-and-butter jobs, I work on the faith that I’ll get paid. In 30-some years, it’s worked out pretty well. Almost all of my clients are either long-term customers, or come to me by way of word-of-mouth. There’s no way I could convert them. But for brand-new clients, I’ll try your way.
— BC