This thread makes fascinating reading for some who’s not from the US.
What’s fascinating is that we have exactly the same problems with late payment here. And I thought all along that it was a cultural thing to be late with payments. Apparently its global, with some tenuous link with the state of the economy.
Out here, we don’t probably have as stringent laws as there are in other parts of the world regarding late payment, but ‘hiding behind the recession’ seems to be a universal thing. This is particularly difficult when one works with clients outside of one’s country.
What I’m beginning to explore is, instead of threatening to, or even carrying out a penal charge for late payments, one could invoice clients with a due date for payment maybe 30 days from invoice date. Then show a 10% discount if paid within that date. And maybe even a 20% discount if paid within 2 days? Sort of like rewarding sincerity rather than punishing dishonesty.
I know calling late payment dishonest is a bit harsh, but if you saw how some of these late payers lived their lives – cars, houses, country homes, expensive restaurants, business class etc. – holding back payment for someone’s labour gets pretty close to dishonest.
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Neil Sadwelkar
neilsadwelkar.blogspot.com
twitter: fcpguru
FCP Editor, Edit systems consultant
Mumbai India