Reasonable Turnaround for Payment

[msommers]

For you guys that do contract/service jobs, what is a reasonable amount of time that you wait to get paid? Working with bigger companies I know they have cut-offs vs. someone individual who can pay you before/right after delivery.

With one particular management company here in Edmonton it's been quite common that I don't receive a cheque for a month, month and half after delivery of photos until I say something and sure enough a cheque is in the mail a few days later. I understand this happens, people forget, things get lost but with this company I'm constantly "chasing my money." Everyone else either pays EMT every two weeks or credit card the day of the shoot.

Am I just being unreasonable and this is how it goes with bigger companies?

[sr20s14zenki]

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[lamp_shade_2000]

I would say a month + is getting unreasonable unless you had already agreed to the payment term in advance. If its just one company you are having issues with, why not create a new policy for them that states when they need to submit payment by?

I don't do photography but in my line of work out standard payment term is upfront if paying by cheque or credit. NET 30 for companies that have a credit line or account setup with us. we do have the odd NET 45 term setup for some companies but its rare and takes some negotiations before we agree to those terms.

[TomcoPDR]

edit: misread heading. Don't know answer

[msommers]

This is specific to photography...

[TomcoPDR]

Originally posted by msommers
This is specific to photography...

Ah man. I'm sorry, misread the section/heading.

[D'z Nutz]

30 days upon delivery is my policy, though I've only had a couple clients ever exceed that and most of my clients usually pay within a couple days.

If it's constantly the same client, why not have a 50% up front, 50% after X days sort of policy? Or talk with them and explain you're constantly having to chase them for payment and see what they suggest is reasonable? Maybe they just have a forgetful idiot in accounts payable that needs to be nagged constantly and they're completely okay with it. Or maybe it's time to withhold the product until they can start paying it upon delivery.

[ExtraSlow]

Thirty days doesn't seem unreasonable. In some industries that would seem downright quick.

If this is one client, maybe offer them an "early pay discount"? ten percent off if they pay within ten business days?

[rage2]

We have vendors that we deal with whom are net 90. We can't even invoice them until 30 days after, so pretty much net 120. It's a huge PITA when it comes to tax time, especially quarterly GST because you're paying GST that you haven't even collected yet. :nut:

What can you do though, they're big companies, you want their business, if you won't accept their terms they'll find someone else. Just have to decide if it's worth it to you or not.

[HiTempguy1]

What rage said.

If you purchase something, and the person/company has no real way of forcing you to pay... why do so any sooner than necessary?

Shitty business? Sure, but business owners/companies aren't in it to make friends, they are in it to make money. Cash flow management, and money in pocket is key. :dunno:

[msommers]

Originally posted by D'z Nutz
30 days upon delivery is my policy, though I've only had a couple clients ever exceed that and most of my clients usually pay within a couple days.

If it's constantly the same client, why not have a 50% up front, 50% after X days sort of policy? Or talk with them and explain you're constantly having to chase them for payment and see what they suggest is reasonable? Maybe they just have a forgetful idiot in accounts payable that needs to be nagged constantly and they're completely okay with it. Or maybe it's time to withhold the product until they can start paying it upon delivery.

This is my thinking as 95% of their business is conducted in Calgary and I suspect they forget. After my next job while sending in the product I'm going to have a conversation with them and try to address this. I didn't want to have unrealistic expectations and sour a business relationship, but for the photography world it does sound like I have a legitimate basis for concern/adjustment of practice.

Thanks guys. :thumbsup:

[Mitsu3000gt]

It's been ~30 days for businesses and ~1-3 days for individuals for me. Most businesses only do cheque runs once or twice a month (or longer).