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Re: Invoice Issue (did I overstep?)

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Steve Martin
Re: Invoice Issue (did I overstep?)
on Jul 14, 2011 at 12:22:31 am

Aaron,

Your policy is not unreasonable. Yes, many corporate clients do want net 30 or net 45 days - especially larger companies. I believe that they've made the calculation of using their A/R as a source of revenue.

If you trust them to pay the bill, it's no big deal and you build in the cost of cash flow (either through your own cash reserves or a line of credit) and build the cost (time value of $) into the project cost like you would everything else.

If you can't (or just don't want to do that) another reasonable alternative is to request a credit card that you and have them sign an authorization document giving you the right to bill against it as the project progresses with the final charge hitting at the master hand off. You'll have 1-2% discount fees but you can build/bury that into your fees.

Any reasonable client would understand your need as a small business to get paid in a timely manner. Sometimes a friendly discussion can persuade them see that it's not a matter of trust as much as it is that you simply can't afford to be their bank.

Of course if they are the unreasonable type, you should listen to your gut that you might be dealing with a grinder and let him find another producer. In my experience, when they are difficult BEFORE they hire you, they're MISERABLE once you start the project and ABSOLUTELY UNBEARABLE as you approach the end. You know the type, endless revisions, etc...

Good luck!

Production is fun - but lets not forget: Nobody ever died on the video table!


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