Not getting paid on time.
It’s a global problem.
If you’re working in Europe or you have European clients, stay with me.
What you’re about to learn is important because the rules have changed. Before I tell you about new regulations that are in place to protect you, consider this.
Thank you once again Paul. As an American who owns and operates a business in Europe, this info is pure gold to me. I have had more and more issues with late or no pay lately. And while I have operated my own business for almost a quarter century, the collection protocol for these types of clients was always my own. The fact that finally, with this new legislation, government is stepping up on our behalf – is refreshing. I WILL be using much of this in the days to come, as I have some “hunting and tracking” to do, and with a few of these lame clients, there is a “No Bag Limit”. Cheers
thanx for sharing this, Paul! I just got part III; i’ll now go back to read I + II; AND i’ll share it all on our modest li’l news-blog; btw just fyi municipality pays 9 months (that’s 270 days!) some semi-state/state owned comp.s (like electricity, petrol companies etc.) pay 6 months after receiving the invoice; we pay our vat after 3 months and our talent after 2; no way! THANK YOU VERY MUCH FOR YOUR CONTRIBUTION. kindest regards from The Eternal City!
Monty and Edwin, it would be interesting to follow up with you and find out how your late-paying clients react to the new legislation. Remember: you can’t use these rules retroactively, but freelancers should be proactive and change the terms & conditions on their contracts. Let’s hope things will change for the better!
Superb Paul! Like many of our VO colleagues, I have clients in the EU as well. This is good information to be aware of. Can you just imagine if legislation like this were enacted in the USA?
Most of my clients pay within 30 days (some within 30 minutes!) but there are always a couple that drag their feet. I’ve only had to threaten legal action once. For the most part, my clients are great about paying.
I liken it to this: I can’t go to the grocery store or out to dinner and take 80 days to pay for it. Once I have a lighthearted conversation on the phone and mix in this metaphor, most clients get it. But again, there’s always a couple that want to push it.
Great stuff as always, Paul. Blessings!
Anthony, I wish legislation like this would be in place in the USA, but I’m sure some people might not be in favor of what they see as too much government regulation. It’s a shame that solid businesses with talented employees have to go bankrupt because goods that were delivered and services that were rendered have yet to be paid for.
Your grocery store example reminds me of the story I tell at the beginning of my first blog post about getting paid.
One of my new clients wrote to me:
“I fogot to mention that we can of course pre-pay you 100% in advance – could you kindly send me your invoice by the end of this week and include your PayPal ID?”
Now there’s a keeper!
This instantly triggered a memory of working on Wall St.
I remember seeing vendor bills that 120+ days overdue, and stamped “Final Notice”. When I would present these bills to a manager, he/she would say, “Bah, we pay those things at the first sign of legal trouble.”
Then in the same day, I did debt recovery where I was instructed literally, “Get our money from this guy!”, and was taught how.
The hypocrisy was awful and deliberate.
I was planning on writing a blog next week on this topic as it relates to the USA, and this post is great timing, especially given who I work with now.
Great stuff Paul!
On the surface it looks like good news – but I also see a potential Bottom Feeders Alert, ie. “preference given to suppliers who will agree to disregard these new rules and accept the old formula of 120 + go-try-to-find-us”. Where there’s an (ill) will, there’s a way (around the rule).
Steven, I’ll be keeping an eye out for your blog. Your stories are always informative and often thought-provoking. Reuven, in Europe this Directive is the Law and it can be enforced as such. If we decide to let late-payers get away with what they’re doing, we’re enablers and have lost any right to complain.
Hi this article has been the life saver for myself and my wife. We are freelance artists and have been in the throws of trying to extract money from a tight hotel owner- he has our work and now holds us to randsom- no thought to the impact on our small business. Knowing this has made getting this last amount of money from him feel possible. So thanks again for the article!
First off, I’m sorry to hear about your situation. Late-paying clients rarely think about how their decisions impact our small businesses. I really hope you get paid soon!