How to make vendors pay faster?
Thread poster: smiles

smiles  Identity Verified
Vietnam
Local time: 00:07
English to Vietnamese
+ ...
Jan 14, 2008

Hi all,
We freelancers may all agree that making the vendors pay faster or sooner is always our concentration. However, I cannot figure out the best way to do it so I usually have to wait for at least 1 month to have the payment paid. Someone has suggested that I should give out some discount to get faster payment. I am still not sure about this.
So I am waiting for your sharing of experience on how to make the vendors pay faster?

[Edited at 2008-01-14 04:52]

[Edited at 2008-01-14 06:03]


Direct link Reply with quote
 

Kerati Kuaimongkol  Identity Verified
Thailand
Local time: 00:07
Partial member (2007)
English to Thai
Dear colleague Jan 14, 2008

I'm not quite sure about the discount, I mean, I don't think it gonna work. Instrade, it will make us even more loss.

I think the best way is refer to the blueboard to check how the payment habit of the client.

Hope you will get a good habit client.

Kerati


Direct link Reply with quote
 

smiles  Identity Verified
Vietnam
Local time: 00:07
English to Vietnamese
+ ...
TOPIC STARTER
With healthy vendors Jan 14, 2008

Kerati,
I assume that we are having absolutely healthy vendors, but usually they require 30 day payment at first and then payment at the end of each month on all the work done in the previous month for long term collaboration. It is ok, rite? However, sometimes we need faster payment, say sooner than 30 days. So anyone has experience on how to handle this?


Direct link Reply with quote
 

Laura Gentili  Identity Verified
Italy
Local time: 19:07
Member (2003)
English to Italian
+ ...
My experience Jan 14, 2008

During the summer I had cash flow problems so I offered my customers a discount (around 3%) if they made an immediate payment (within a week).
Most of them agreed. A couple of them paid immediately but did not want the discount. Only one customer said it was not possible due to their automated payment system.

Of course this does not work with small amounts.

Laura


Direct link Reply with quote
 

Jenny Forbes  Identity Verified
Local time: 18:07
Member (2006)
French to English
+ ...
Try negotiating earlier payment when accepting the order Jan 14, 2008

smiles wrote:

Kerati,
I assume that we are having absolutely healthy vendors, but usually they require 30 day payment at first and then payment at the end of each month on all the work done in the previous month for long term collaboration. It is ok, rite? However, sometimes we need faster payment, say sooner than 30 days. So anyone has experience on how to handle this?


The only way I can suggest of persuading a client to pay earlier than 30 days end of month would be to negotiate earlier payment when accepting the order and, if successful, confirming the earlier payment agreement in writing. Otherwise, in my experience, a reasonably regular 30-day payment is established with good clients.
Best of luck,
Jenny.


Direct link Reply with quote
 

smiles  Identity Verified
Vietnam
Local time: 00:07
English to Vietnamese
+ ...
TOPIC STARTER
Thank you Jan 14, 2008

Thank you for all of your suggestions. I will try and then post my experience later.

[Edited at 2008-01-14 13:17]


Direct link Reply with quote
 

Astrid Elke Witte  Identity Verified
Germany
Local time: 19:07
Member (2002)
German to English
+ ...
2% cash discount for payment within 7 days Jan 14, 2008

Just write it on every invoice and see what happens!

You will need to write two totals on the invoice, i.e. the total price if payment is received in your bank account within 7 days, as well as the total price for normal 30-day terms.

Then you should also have terms and conditions that say how much interest it will cost them to go over the 30 days! In Germany we have a legally fixed percentage for this.

Astrid


Direct link Reply with quote
 

Suzette Martin-Johnson
Canada
Member (2007)
French to English
+ ...
Interesting Jan 14, 2008

I keep on meaning to try the discount method but never have!

Another thing you could do for future reference is to target agencies that pay within 15 days of receiving your invoice. These do exist, particularly in the US. Some pay even faster than that.


Direct link Reply with quote
 

Oleg Rudavin  Identity Verified
Ukraine
Local time: 20:07
Member (2003)
English to Ukrainian
+ ...
Evoution of priotiries Jan 14, 2008

smiles wrote:We freelancers may all agree that making the vendors pay faster or sooner is always our concentration.

A friend of mine says, many issues become much sell important when your cashflow is regular.

Many beginners (especially those from not so well-to-do countries - me as one) do worry about each payment and need them as fast as possible.

With time, one's clients' pool (it's true about good translators and good freelancers) gets larger and larger, and at a certain point, the revenues exceed one's currentexpenses or needs. At that point, the expedience of painent becomes less important than the regularity and reliability of it.

There is practice which is different in different countries. Spanish cllients sometimes state the net of 90 days. On the other side, in FSU countries the common practice is pre-payment...

Tien Anh Lee, imagine yourself as an outsourcer. Would you be able to meet the (payment procedure and term) expectations of each of your providers? Would you be willing to pay your translators before receiving payment from your client? In other words, from your own pocket?

Yes, expedience of payment is important; but what even more important is reliability.

Cheers,
Oleg


Direct link Reply with quote
 

smiles  Identity Verified
Vietnam
Local time: 00:07
English to Vietnamese
+ ...
TOPIC STARTER
Let's see Jan 15, 2008

Dear Oleg,
Thank you for your suggestion. Yes I am now at the beginning of the freelance career and yes I do care about the fast payment (as you see like many others from well-to-do countries do) as well as my reliability (they are bread and rose I guess).
Just want to know if the experience is working or not by sharing
And thank you proZ for being a good bridge.


Direct link Reply with quote
 
xxxNMR
France
Local time: 19:07
French to Dutch
+ ...
Only one month? Jan 17, 2008

You are lucky! 2-3 months is normal here... which means that we should have a cash flow of three months.

One of my tricks for being paid faster is to invoice my regular clients on the 25th of each month. I have one client (a State body!) who pays me at the end of the same month, just as the salaried workers. On the other hand, a translation agency paid me after 18 months for an amount of... € 30.


Direct link Reply with quote
 

Nicole Blanc  Identity Verified
France
Member (2005)
English to French
+ ...
Prompt payment: a priority Jan 17, 2008

As a French native living in my home country and from my long experience with domestic outsourcers, I can definitely state that most translation companies in France have got serious cash problems. Try to avoid them if you can ...
The economic situation here is pretty bad and we feel that outsourcers are increasing payment times. Moreover: they want high quality for "peanuts"!
As already stated here, settlements 90 or 120 days invoice date are no rare examples in France and I feel that British companies are now trying to do so as well!
This is definitely unacceptable!

Even though it may seem difficult, I am focussing personally on the development of my customer base in specific foreign countries as I realize that a large number of my clients abroad settle my invoices in a very prompt way (no later than 30 days and even upon invoice receipt). Proz.com is a great support within such a demanding goal!

As for new agencies, I always check the Blueboard and avoid outsourcers with pairs's negative comments about payment.
With reliable clients, minor discounts against big translation volumes may be an occasional solution.

When it comes to translating books or huge reports, I think it wise to demand 50% of the total as downpayment and to start the job only when the required sum has been duly received.

Prompt payment is a main issue for us, and I believe that we should all fight to eradicate bad payers (and crooks) from our trade!

Cheers Nicole


Direct link Reply with quote
 


To report site rules violations or get help, contact a site moderator:


You can also contact site staff by submitting a support request »

How to make vendors pay faster?

Advanced search







Déjà Vu X3
Try it, Love it

Find out why Déjà Vu is today the most flexible, customizable and user-friendly tool on the market. See the brand new features in action: *Completely redesigned user interface *Live Preview *Inline spell checking *Inline

More info »
PDF Translation - the Easy Way
TransPDF converts your PDFs to XLIFF ready for professional translation.

TransPDF converts your PDFs to XLIFF ready for professional translation. It also puts your translations back into the PDF to make new PDFs. Quicker and more accurate than hand-editing PDF. Includes free use of Infix PDF Editor with your translated PDFs.

More info »



Forums
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search