| Pages in topic: < [1 2] | Payment after 2 months of job delivery Thread poster: widati utami
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widati utami 
Indonesia
Local time: 03:01
Japanese to Indonesian
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TOPIC STARTER
Dear colleagues,
Thank you so much for your ideas and sugestions.
Good luck to you all...
| | | | tonymacg
Local time: 12:01
Japanese to English
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| It all depends on where you are | Jan 5, 2008 |
I just looked at the detail of my bank statement. My bank pays a grand 0.01% interest on balances up to $A19,999 - and nothing on the first $1,999 - for my current account. I think I'd have to be a very big agency to be making anything worthwhile by sitting on funds paid by clients before remitting them to contractors. And in Australia, most of my clients pay on 30 days or longer, so I doubt that the local agencies are getting paid any faster.
Of course, it's another argument alt... See more I just looked at the detail of my bank statement. My bank pays a grand 0.01% interest on balances up to $A19,999 - and nothing on the first $1,999 - for my current account. I think I'd have to be a very big agency to be making anything worthwhile by sitting on funds paid by clients before remitting them to contractors. And in Australia, most of my clients pay on 30 days or longer, so I doubt that the local agencies are getting paid any faster.
Of course, it's another argument altogether whether the agencies should be paying before they get paid themselves.
And I do realize that bank interest is higher in some other countries.
But for me, I treat my outstandings as working capital, like any other business, and I try to keep my working control under decent control - like any other business.
And I'll be delighted to take on the jobs from all those clients who want to pay after 45 or 60 or even 90 days, provided they do pay. ▲ Collapse
| | | | | All of what you say should be put in a frame and hung in all freelancers' offices | Jan 6, 2008 |
Ralf Lemster wrote:
Hi Widati,
Payment after 60 or 90 days is not unusual - however, you should be aware of the fact that you are extending credit to the agency. Are you prepared to lend them money for two months? Do you know enough about their business to assess their creditworthiness?
In my view, anyone outsourcing business should have the financial resources available to pay providers, regardless of when (or if) their client pays. Someone asking for 60 days' payment terms either makes extra money at your expense, and/or doesn't have the financial backing they should have. Bad news in either case.
Best regards,
Ralf
I have nothing to add - let's hope people read this and remember it when the time comes.
Edit: I just wanted to add that I have trouble understanding why people seem to consider 60/90 the standard. All my clients pay within 30 days, and there are a few who pay after 45 days at the most on certain projects only, but this was agreed with them after a rewarding professional relationship was established with them (lots of trust on both sides). Of course, I did have offers for 60/90, but I turn them down systematically. In such cases, I either "lose" a client I wouldn't be interested to work with in the first place precisely because of their payment practices, or I win a new client who revises their payment practices to fit my needs (a great way to build trust). You have a lot to lose by extending credit to agencies, but you have nothing, absolutely nothing, to lose by handling your money in a responsible manner.
[Edited at 2008-01-06 21:22]
| | | | | Implement Risk Management | Jan 7, 2008 |
Don't forget to implement some risk management procedures...
I try to keep things sorted using Google Docs.
Information Sharing about the Payment Behavior, the Organizational Capability Maturity Level, and the Role Service Level of Clients & Agencies
(EU Translation Service Requirements 4.1 EN-15038:2006 (EN))
... See more Don't forget to implement some risk management procedures...
I try to keep things sorted using Google Docs.
Information Sharing about the Payment Behavior, the Organizational Capability Maturity Level, and the Role Service Level of Clients & Agencies
(EU Translation Service Requirements 4.1 EN-15038:2006 (EN))
http://docs.google.com/Doc?id=dg9xxrf5_86crm48d ▲ Collapse
| | | | | Pages in topic: < [1 2] | To report site rules violations or get help, contact a site moderator: You can also contact site staff by submitting a support request » Payment after 2 months of job delivery | TM-Town | Manage your TMs and Terms ... and boost your translation business
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