Thread: Late paying corporate Client- How pushy should I be?

This is something non confrontational me stuggles with, so asking opinions all round.

Some may remember the round of 6 performances Mon-Sat we did for a large resort out here. The last performance was a week last Saturday [27 Jun]. The first had been 23rd- 2 weeks yesterday. My normal terms of performance are 50% non refundable on booking, balance due before performance.

This lot phoned in such a rush, that I knew organising the deposit was gonna be a problem. So smack me now for not trusting my gut instinct, please!However, I had such reassurances it would be in by the monday morning before we danced

Then, the FRI afternoon before [stall tactic much?] there is suddenly a whole host of paperwork I need to fill in first. Which I got back to them that fri- but, hey, who works fri late arvo? Against better judgment, I just went with it. They would get it through by tuesday. By they time it was obvious they weren't going to process the deposit, we were already neck deep in the performances.

The Fri [26th], again afternoon, bulk of the performances later, there was suddenly a few more forms they had forgotten. Probably they innocently had- why did it take a week to notice? Stall tactic much- again!

Sigh says me. They want to pay it all in one, don't they? Never mind, one more performance and we are through.

Except- they still haven't paid. Haven't heard anything. Annoyingly, my stern enquiry email [2 July, last Thurs] has gone unanswerd too. Guess I am not important, eh?

I know, deep down, from having seen it pulled on my own instructors, that what they are trying to wangle is to pay like 6 weeks later, as corporates here seem to- presume it is some automatic one-day-pay thing. Which I half expected- but did expect to have my deposit to midgit it

My 'issue' is I hate paying my dancers later then a week after performance. They earned the dosh fair and square. But... this was so big, and so many of us, and my salary is tight at best times. I cannot just shell out all everyone is due and wait along for this lot to catch up, though I am attempting to slowly do so, juggling with my bills and expenses. It is making life horribly awkward for me.

I honestly don't pretend they aren't going to pay- why would they? The rep risk for such a big company wouldn't be worth it for the pissy little sum they owe me from what their daily profit/loss sums must be. But nor is this fair on me, and is forcing me to a less professional practice in paying my dancers.

Not that I think any of it will work before they want to, but how hard should I ride them over it? On the phone twice a day, or leave til they get to it? Obviously I want to maintain a professional front, not be a harridan or look desperate. I would also like my payment in the terms we agreed on- which they have already breached- and don't want to come off the weak little amateur to be trodden on to them either.

Advice?

You can continue to contact them - daily. Also - have a lawyer friend draft up a letter and send it.

Though - I have found that most corporate organizations have a 30 or 60 day billing cycle here in the US. Now - you may be able to get payment sooner but it usually has to go through accounting which has to be approved by mangers X, Y, & Z then processed and mailed to you.

Your best bet is to contact them daily. Maybe call and find out who the head of accounts payable is. If you have a name - you have more power. Annoy the heck out of them until they pay or at least give you a timeline.

Send them a past-due invoice and indicate a date by which there will be an additional late fee if not paid. Calling is unlikely to make it go any faster for a corporation, but a late invoice with a penalty will usually fix it.

Just remember that you have worked for this money, it is not unprofessional to ask for money that you are owed. I would definitely contact the accounts department, and explain that they need to get a move on because you have other people to pay as well.
Also let your dancers know that you are working on getting the money from this company asap, but if I were you I would not pay them until you have received the payment yourself. Make sure they know it is not your fault, and it is down to the company that employed you to dance.
Most large (and small) companies are dragging payments out at the moment, this causes even more cashflow problems for everyone else, especially those already suffering.

i would not pay the dancers until you have the money in your hand. don't shortchange yourself because of some corporate haggling.

also, calling will just get you bumped from one to another line. send them a bill charging a late fee. they probably do it all the time so that's the kind of language they will understand.

good luck.

If you have quickbooks or peachtree print up an official invoice with the date of service. Spell out how much extra they will owe you the longer they wait. 30 days = fee, 60 days = higher fee and so on.

Hey.

Thanks for the advice.

I pay the dancers within a week because it is in their contract with me that those are their payment terms. I know not everyone works like that. My choice. But my base feeling always has been that if they did it, they are owed for it. Should I , for any reason, not get paid, it is my fault as big boss/ booking agent for not making sure my usual terms are in place. Although I do usually work something out in those cases- like we share the 50% or go 75%/25% [presuming I was one of a duo who danced] on it, at days end I feel they have the 'right' to demand their full payment, even when there is stuff ups.

In this case, I have informed them of the corporate foot dragging and asked to take a delayed payment. They are happy with it. Its me who isn't! Just my personal bug bear, especially when a couple are not my regular dancers, but people I asked to sub in from outside our school.

They [clients now] have been invoiced already. I don't seem to need them a lot, so I am sketchy on the finer corporate workings of the invoice! Can/When can I issue another? And how is it phrased as opposed to the original 'you owe me x for y, schmuck' format?

Thanks again.

How long since the original invoice?
This is a good format to follow.
Just keep increasing the late fee every 30 days (that's how most corporations charge accounts in deficit)
http://www.jian.com/software/busines...unt-second.pdf

1. Save & archive EVERY email between you and this client, including the ones setting up the show & terms of performance. If no emails exist or phone conversations take place, create a written account of the conversation with dates & times.
2. Send written notice that you will be providing an invoice that is payable upon receipt, indicate that late payments are subject to a penalty of XYZ.
3. Create an invoice with penalty late fees spelled out
4. Have invoice notarized or signed by lawyer
5. Show up in person to deliver invoice to accounts payable department or head of accounting. Get signature indicating that the invoice was received.
6. Ask when you can expect your payment.
7. If no payment arrives by specified time, small claims court.

big corporate clients have had to wait up to six months. sucks, but seems to be that world and they know you wont take em to court... and so far eventually did pay

Going on 3 months here without pay from a corporate client. Work was done by dancer, well attended workshop, no payment sent or communication to indicate when or if to expect payment. I wasnt aware that this was "the norm"
Good luck to you.

I have been on the other side of this, working for a big corporation as a secretary and trying to help small businesses get paid by them. (This wasn't even technically my job but I felt so bad for these people just trying to get paid.)

A LOT of small businesses here refuse to work with large corporations because it takes such a damn long time to get paid.

The exception is if you are able to accept credit card payments. If you are able to get the large corporation to pay you with a company credit card you will be much, much better off. In some cases they may be able to pay you out of petty cash, even if it is hundreds of dollars, but this is not often an option.

My post got too long, so will continue ...

Unfortunately sounds like your current situation has already entered the system and I doubt you'll be able to get them to change your payment method but it could be worth a try. Anyway, remember that for next time.

When you mentioned all the paperwork that suddenly appeared ... gosh that brought back memories!! (Don't mention the acronym GSAP in my presence ...) Often the person who hires you doesn't understand what the Accounts Payable area needs to be able to pay you, the vendor. ..cr.: <-- I used to do that quite a lot ...

For your current problem, yes I would recommend that you keep calling them. Ask them :

-- if they have assigned a purchase order number or some other kind of reference number to your payment. This will help you to track the progress, even if you end up speaking with different people each time you call.

-- Ask them what their payment cycle is and when your invoice was processed by their accounts people. Ask them if there is a payment reference number and a date. That should help you figure out when to expect to see the money and then you can call them again if it doesn't appear.

-- If they don't know, ask them if there is someone else you could speak to. If they are putting you through to someone else, get them to give you the full phone number and name of that person. Just in case you get cut off.

saga continues ...

-- Be persistent. If the person you are speaking with doesn't know, insist that they find out who might be able to help you. If they act like you are being annoying, just remember that THEY are the ones who owe YOU $$$. BUT try to keep your cool.

-- Remain calm and friendly. I know it's annoying. They know it's annoying for you. But keep in mind they may be dealing with several annoyed vendors trying to get paid. This wears the corp employee down, especially when getting the runaround from their own accounts people. Try to call them with the frame of mind that you are both working together to solve the problem.

Be aware that if you re-issue the invoice with a late fee this in itself will delay your payment as they will probably have to go through the whole approval process again because the new amount will no longer match what is on their paperwork. It might be better to warn them and then issue a new invoice with just the late fee.

Sorry this was all so long ... just like the accounts process in big corps. Of course this is only based on my experience. But in many ways, one multi-billion-dollar global corporation is much like another.

Thanks all, esp you Jilyan. Such a lot of advice!

I have been given a payment date of tomorrow. Think it will happen?

-- Remain calm and friendly. I know it's annoying. They know it's annoying for you. But keep in mind they may be dealing with several annoyed vendors trying to get paid. This wears the corp employee down, especially when getting the runaround from their own accounts people. Try to call them with the frame of mind that you are both working together to solve the problem.

No worries on that score :) I worked for a critical advice on manuscripts company. I can sweet talk whilst cursing pretty efficiently when necessary! :)

I suppose there is always the 3am zill brigade if it comes to it.

Large corporations will either pay via company check or direct wire. Did you give them your routing information when you had the contract signed?

Originally Posted by Amira_Siddiqah

No worries on that score :) I worked for a critical advice on manuscripts company. I can sweet talk whilst cursing pretty efficiently when necessary! :)

I suppose there is always the 3am zill brigade if it comes to it.

That is a great skill to have! I hope the payment does go through.

Sorry I got so verbose yesterday, reading your post just brought the memories flooding back. I'd been blocking it!!! I don't work for a multi-billion dollar global corporation anymore thank gawd.

Large corporations will either pay via company check or direct wire. Did you give them your routing information when you had the contract signed?

Hey hey. We are lucky here in South Africa. We have a superb banking system [that overcharges on fees, but never mind that :)].
The default these days is EFT internet transfer. Most places would run screaming rather then use a cheque, ofr its fraud value

And Jilyan- congrats on your great escape! That must be a weight of of your soul.

wow, jilyan. that's a lot of great advice to keep in mind for the future.

09/09/10
Dear Ladies:

NOW You know why I want to become a lawyer. not that this will grant instant payment but at least the knowledge will ARM you.

Originally Posted by mahsati

Send them a past-due invoice and indicate a date by which there will be an additional late fee if not paid. Calling is unlikely to make it go any faster for a corporation, but a late invoice with a penalty will usually fix it.

This. & make sure the original date when the deposit was due (as agreed upon) is the date you are counting from.

Contact the person who hired you, as well as accounting, once a week. The person who hired needs to be aware that accounting is not coming through. See if they can give you a date that the check will be issued and mailed. Be polite and professional, but make it clear that you were expecting to be paid immediately on receipt of services - and that you are holding off on paying your dancers because of this.

Email is best, because it holds up in court. :) Good luck!

09/09/10
Dear Ladies:

Payment was not my original post. I have not gone pro yet. So far I am strictly an amateur, who studies all forms of Mid-eastern dance for the fun, fitness and stress relief, as I have a very high stress job.