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Why do companies pay after long time?
Thread poster: Imad Almaghary
Imad Almaghary
Local time: 15:35
English to Arabic
+ ...
Mar 23, 2006

Good morning professionals

I am wondering why companies pay after a long time such as thirty days or forty days. Companies keep asking for meeting the deadline and they seem to be in a hurry to receive the translation and instead they should pay quickly. How come that they want to get it fast and be late in payment?

Do you agree?

Thanks in advance.


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Ralf Lemster  Identity Verified
Germany
Local time: 14:35
English to German
+ ...
Liquidity is the issue Mar 23, 2006

Hi Imad,
Very often intermediaries will not have extensive financial resources (or don't want ot use them, for instance, to save on interest expenses); the purpose of long payment terms is to be able to pay translators using the funds received from the (end) customer.

Whether this is a practice you're willing to tolerate depends on your business model - specifically, to what extent you depend on order flow from intermediaries.

Best regards,
Ralf


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Waleed Mohamed  Identity Verified
United Arab Emirates
Local time: 16:35
English to Arabic
+ ...
Another good reason... Mar 23, 2006

is that a translation agency wants to be sure they will find you to do any corrections required by their direct client. For example, if their client is not satisfied with your translation, they will come back to you with the client complaints and ask you to correct the same!

Regards,

Waleed


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Hepburn  Identity Verified
France
Local time: 14:35
English to French
+ ...
60 days for payment Mar 23, 2006

Imad Almaghary wrote:

Good morning professionals

I am wondering why companies pay after a long time such as thirty days or forty days. Do you agree?



No, I don't, but I accept it. What I do not accept is 45 or 60 days. That is plain ridiculous and I refuse those terms even if it means losing the job.

I have carelessly accepted a job last week, though, with a 60 days delay, because I had not read the order carefully. However, the client asked me to send the memory and I told him I would do so if I was paid within 30 days.
They are still thinking about it, but they will only get my memory once they have paid me!

I think and am even sure that the agencies get paid well before 40 days let alone 60. But hey! if they leave all those sums from different jobs in their savings account, it will bring enough interest to make it a worthwhile albeit disreputable practice.

I wish nobody accepted such long delays.

[Edited at 2006-03-23 10:19]

[Edited at 2006-03-23 10:20]


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Giles Watson  Identity Verified
Italy
Local time: 14:35
Italian to English
Local expectations Mar 23, 2006

Local expectations also come into it.

In Italy, much of the economy is controlled by the state or state-owned enterprises, which tend to be very slow payers. This has a knock-on effect on the rest of the economy.

For example the other day, I received a first order from a winery which came with "90 gg" (90 days) already printed on the form.

Terms are of course negotiable, and I have the impression that reputable companies in Italy are gradually coming closer to the EU ideal of 30 days, but customers in northern Europe and the US seem to expect to pay more promptly than those in Italy.

FWIW

Giles


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Williamson  Identity Verified
United Kingdom
Local time: 13:35
Flemish to English
+ ...
Interest Mar 23, 2006

Interest earned on the sum paid by the end-client to the agency. Not much for one translator, but for big projects, this trick in the book is worthwile.

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Tina Vonhof  Identity Verified
Canada
Local time: 06:35
Member (2006)
Dutch to English
+ ...
not unreasonable Mar 23, 2006

Ideally, the translation agency should have sufficient resources to pay translators without waiting for payment from the end-client but in practice that is what they often do. If the end-client is a large corporation or organization, it often takes up to 45 days to pay in invoice. For example, if an invoice is received after the 15th of the month, it may take till the end of the following month to get payment processed. If the translation agency has a similar system, it may well take 60 or even 90 days for them to pay the translators.

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Rita Bilancio  Identity Verified
Local time: 14:35
English to Italian
+ ...
Unfortunately yes!!! Mar 23, 2006

Giles Watson wrote:

Local expectations also come into it.

In Italy, much of the economy is controlled by the state or state-owned enterprises, which tend to be very slow payers. This has a knock-on effect on the rest of the economy.

For example the other day, I received a first order from a winery which came with "90 gg" (90 days) already printed on the form.

Terms are of course negotiable, and I have the impression that reputable companies in Italy are gradually coming closer to the EU ideal of 30 days, but customers in northern Europe and the US seem to expect to pay more promptly than those in Italy.

FWIW

Giles


Yes, as a matter of fact Italians are quite slow. Let's hope
it gets better


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Imad Almaghary
Local time: 15:35
English to Arabic
+ ...
TOPIC STARTER
To be late is not justified. Mar 23, 2006

Good morning professionals

To be late is not justified. If you have two companies: one pays instantly and the other one pays after certain long period of time then I am sure you will pick up the former. I think the best company as you suggested can be prepared to pay instantly. This instant payment should be managed within the internal company system because contracts are made with the company not the end-client.

There are many times when we have sleepless nights to meet deadlines. I hope this is appreciated by most companies.

It is not easy to build a good reputation but it is very easy to tear it apart and destroy it even in a way that is not deliberate.

What is the solution for wiping out this phenomenon of late payment?

I thank you for the fact that I learnt a good reason for the interests although not preferred.

Thanks for help.


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