How long for clients to pay

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  02 February 2013
If nothing special is stated in the contract or on the invoice, maximum delays depends on your local legislation. Ususally it's between 30 and 45 days after the reception of the invoice. It used to be 90 days in France, 120 days in Italy... You can apply a penalty after that (say 11% annual rate) or a discount before that for early payment (everything being stated on the invoice).
 
  02 February 2013
I try force in instant pay when opening new relations.
That means whenever we send invoices we put current dato as latest payment day.
This is the base from which we work from - some, and its hard for me to get the accurate number but I have a feeling its around 30-40% accepts these terms.
The rest we discuss with all the way up to 30 days payment after invoice was sent.

I can see its very different based on previous posts on this thread, so seems to depend on where your clients are located ( and how good you are with a tounge )

Last edited by gkmotu : 02 February 2013 at 04:23 PM.
 
  02 February 2013
50% upfront

50% 30 days after delivery.

EDIT: I should be clear that it also depends on the size of the project/budget. Sometimes 25% to get started is enough for operations until completion.
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  02 February 2013
I would never do 50% upfront.
It makes the clients think they cant be trusted in my optics.
It might work other places in the world or even have to be like that based on local b2b environments.
 
  02 February 2013
Originally Posted by gkmotu: I would never do 50% upfront.
It makes the clients think they cant be trusted in my optics.
It might work other places in the world or even have to be like that based on local b2b environments.


Clients are aware that when we request upfront payment it's because we are investing every cent into their project. Your already established relationship with a client should have removed any doubt of you mishandling their cash.

But, again, depending on the project size and budget, upfront payment can change.
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  02 February 2013
Alright, different in my world then.
We pay all expences as there is capital to realise whatever product we are going to produce.
Consolidation is not bad on that account.
It's just a different business strategy basicly.

Last edited by gkmotu : 02 February 2013 at 04:55 PM.
 
  02 February 2013
I've been Illustrating for 30 years. I have never gotten money up front. There was the Prince album cover I did get part way threw the job and heard he was going to declare bankrupcy. So I asked for half of the money before I went any further. Did that.

Most all my jobs are 60 days. Some of the bigger clients like Target are 2 weeks if I bug them. Back when I needed the money right away I used to put a note on the invoice: 10% discount if paid in 10 days. Some bit on that.
 
  02 February 2013
Originally Posted by rownd: I've been Illustrating for 30 years. I have never gotten money up front. There was the Prince album cover I did get part way threw the job and heard he was going to declare bankrupcy. So I asked for half of the money before I went any further. Did that.

Most all my jobs are 60 days. Some of the bigger clients like Target are 2 weeks if I bug them. Back when I needed the money right away I used to put a note on the invoice: 10% discount if paid in 10 days. Some bit on that.



That sounds pretty professional and what I hear for the norm. It's getting the ball rolling and having a log of on going work and continued account payables that needs to be established.

In the litigation field, defense work (good sized budgets) is billed monthly and may take 30 days minimum but usually longer to pay. Plaintiff work (small budgets) is typically paid 100% upfront, usually because the attorneys are also working on contingency.

Pay on delivery and within 10 business days is really ideal when you can make it happen.
 
  02 February 2013
I think the most important part regardless of the nº of days is having them covered in the contract. The more water tight it is, the more protected both parts are.
 
  02 February 2013
Personally I state 30 days from the day the invoice is received for all my work. If its a long job, I bill them monthly for the work done so far. The only time Ive accepted anything else is on a current job which although it has a deadline, its 40 days work spread over 7 months. For this its 25% upfront, 25% halfway through and 50% upon completion.
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  02 February 2013
Originally Posted by gkmotu: I would never do 50% upfront.
It makes the clients think they cant be trusted in my optics.
It might work other places in the world or even have to be like that based on local b2b environments.

I ALWAYS require a 50% deposit up front on any work from a new client. It's being prudent. This new client could have stiffed the last 20 people he worked with - or not - the fact is we as business people have no idea. Once a track record of payment has been established, then I waive the 50% deposit and request payment within 30 days - actually my invoices say Due On Receipt. I've only been left hanging twice in 12 years - once was my fault and the other was the client lied and ended up going bankrupt. Fortunately it was only for about $3k, but a colleague ended up losing over $10k. Ouch.

IMO, ALWAYS require a 50% deposit up front for first time clients.
 
  02 February 2013
Originally Posted by Tuqui-tuqui: 50% upfront

50% 30 days after delivery.

EDIT: I should be clear that it also depends on the size of the project/budget. Sometimes 25% to get started is enough for operations until completion.
this seems like an odd request for any profession other then Assassin or Smuggler.
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  02 February 2013
Originally Posted by DSW: I ALWAYS require a 50% deposit up front on any work from a new client. It's being prudent. This new client could have stiffed the last 20 people he worked with - or not - the fact is we as business people have no idea. Once a track record of payment has been established, then I waive the 50% deposit and request payment within 30 days - actually my invoices say Due On Receipt. I've only been left hanging twice in 12 years - once was my fault and the other was the client lied and ended up going bankrupt. Fortunately it was only for about $3k, but a colleague ended up losing over $10k. Ouch.

IMO, ALWAYS require a 50% deposit up front for first time clients.


We may or may not have the same type of clients and work or not work in the same fields.
Where I come from it would seem disrespectfull to demand as everyone is in plenty.
I do not fear clients not paying, they have high moral and high ethics all of them. ( and this is what drives the country I live in )
We do not partner with low moral clients. So we do not face this issue.
Again this is a business angle - and there are many of those. Yours beeing another one.

Last edited by gkmotu : 02 February 2013 at 09:56 PM.
 
  02 February 2013
Originally Posted by gkmotu: We may or may not have the same type of clients and work or not work in the same fields.
Where I come from it would seem disrespectfull to demand as everyone is in plenty.
I do not fear clients not paying, they have high moral and high ethics all of them.
We do not partner with low moral clients. So we do not face this issue.
Again this is a business angle - and there are many of those. Yours beeing another one.


I LOVE your clients! We work in arch-viz and builders are more often than not, notoriously cheap.

"Yeah, I know it's cheap, but can you give me a bigger discount?"

Sheesh.

Here in the US it's taken in stride - 50% up front? Okay. If they balk at that for first-time customers, then I wonder how serious they are with their project. But that's here AND in arch-viz. I like your clients MUCH better.
 
  02 February 2013
Originally Posted by DanHibiki: this seems like an odd request for any profession other then Assassin or Smuggler.

50% upfront is a little rarer than thirds splits or quarter upfront, but it's absolutely not an odd request.
On jobs of a certain duration 50/50, or other splits, not only makes sure the client is invested in your work, and won't find a way to do a 180 half way through, it also equalises interest over the job between compound accrued from the upfront payment and lost interest on the other half, as you don't monetise daily.

As always though it's a fine line one has to walk between trust, winning new clients over, covering one's arse and all.

If a long standing, reputable client with no history of foul play can turn around a better deal if you let them pay in full at the end of the job, chances are the loss of interest is irrelevant and the continued collaboration is worth more than change, then you let them. New clients with the undecided, I'll know it when I see it face, are better lost than found unless you have both a well proofed contract and some cash in pocket to make sure they stay invested in your work.
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