| Pages in topic: [1 2] > | Payment terms being ignored Thread poster: Fabian Luttman
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Fabian Luttman 
Canada
Local time: 11:51
Member (2003)
English to Spanish
+ ...
Hello all!
I will try to give you as much context as possible regarding this question.
“ABC” is a big international Oil & Gas company who contacts me once or twice a year for technical projects. Usually to translate a rig user manual or marketing material for their clients. I have been working with them for more than 15 years, and the people I deal with have constantly changed over time, but my contact information must be written somewhere within the company because they keep cal... See more Hello all!
I will try to give you as much context as possible regarding this question.
“ABC” is a big international Oil & Gas company who contacts me once or twice a year for technical projects. Usually to translate a rig user manual or marketing material for their clients. I have been working with them for more than 15 years, and the people I deal with have constantly changed over time, but my contact information must be written somewhere within the company because they keep calling me for their projects. Being a big company, I usually get contacted by a project or documentation manager for a quote, once my quote gets approved, I receive the green light to go ahead and (sometimes) I interact with their technical writer about errors I found in the original, clarifications I might need, files format, etc., when I finish the project I will send it back to whoever requested it, along with my invoice. Then my invoice will be authorized for payment and internally sent to Accounts Payable for payment.
Since the beginning, I have always stated in my invoices that my payment terms are net 30 and they never objected them, however, their internal global policy seems to be net 45. They have consistently issued a cheque after 45 days of processing my invoice (regardless of what my invoice says) and mail it to me. Since we are located in different countries, their cheques will take between 10 and 20 days to arrive, on top of the 45 days they take to issue them. Even a few times I asked Accounts Payable if they could send me the cheque via courier to get it faster, but they always ignored me…
Finally, here is my question: Will it be OK to quote them since the beginning of my next project that the cost of it will be different according to the payment terms?
For example, I can I quote the next project as follows?
If paid withing 30 days: $7,500
If paid within 31-60 days: $7,900
If paid within 61-90 days: $8,300
Will it be OK/legal if I add this clarification into my quote?
Please let me know what you think about it, or if you have had a similar experience…
Many thanks!
Fabian ▲ Collapse
| | | | Tom in London
United Kingdom
Local time: 16:51
Member (2008)
Italian to English
| Play it their way | Oct 13, 2020 |
Since they seem to be good payers and a regular client, if I were you I'd just accept their 45 days payment time and put up with it. I wouldn't get all bureaucratic about it or do anything that might antagonise them. Also, instead of having them mail you a cheque (which seems like a very old-fashioned way to do it) I would set up a PayPal agreement with them, a direct bank transfer, or something else that speeds up the payment process.
Consider yourself lucky; I have one long-time ... See more Since they seem to be good payers and a regular client, if I were you I'd just accept their 45 days payment time and put up with it. I wouldn't get all bureaucratic about it or do anything that might antagonise them. Also, instead of having them mail you a cheque (which seems like a very old-fashioned way to do it) I would set up a PayPal agreement with them, a direct bank transfer, or something else that speeds up the payment process.
Consider yourself lucky; I have one long-time client in Italy who pays me after 90 + 10 days! Unbelievable I know, but they're a regular client and always pay without needing to be reminded.
[Edited at 2020-10-13 15:13 GMT] ▲ Collapse
| | | | Tim Friese
United States
Local time: 10:51
Member (2013)
Arabic to English
+ ...
| Better a discount than a penalty | Oct 13, 2020 |
First of all, you may be wasting your time messing with a big company. It may be that their internal processes are complicated and timelines are fixed. If you have appropriate savings, you shouldn't notice whether payment is net 45 vs. net 30.
But to answer your question, if I was going to try and address this behavior, I would increase all quotes by a few percent and then put a note that says "Ask me about a 2.5% discount for payments received in less than 30 days" or something sim... See more First of all, you may be wasting your time messing with a big company. It may be that their internal processes are complicated and timelines are fixed. If you have appropriate savings, you shouldn't notice whether payment is net 45 vs. net 30.
But to answer your question, if I was going to try and address this behavior, I would increase all quotes by a few percent and then put a note that says "Ask me about a 2.5% discount for payments received in less than 30 days" or something similar.
Again, though, I just don't think it's worth the time and effort or the downside of making waves with a long-term client. ▲ Collapse
| | | | Samuel Murray
Netherlands
Local time: 17:51
Member (2006)
English to Afrikaans
+ ...
| Discount is better than surcharge | Oct 13, 2020 |
Fabian Luttman wrote:
Will it be OK/legal if I add this clarification into my quote?
If paid withing 30 days: $7,500
If paid within 31-60 days: $7,900
If paid within 61-90 days: $8,300
I'm not sure how valid this would be. Essentially you're charging them a late payment fee, and by my calculations the fee is 60% on an annual basis, which is so excessive and no corporate company would even consider it. However, giving a discount for early payment is not only welcomed but perfectly legal. So, tell them $8300 is the invoiced amount, but that they can get a $500 discount if they pay with 14 days (and give them the discount even if they pay within 30 days, but don't tell them that).
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If I understood correctly you have worked with them for 15 years and they have always issued payment after 45 days.
So, why is it bothering you now only? Is there anything else that makes you unhappy working with this client?
I'm far from having as much experience as you do, but I wouldn't advise to try to increase the rate just to try to make them pay earlier. It could rub them the wrong way. It's a big company, it will be easier for them to find a new translator rather than ... See more If I understood correctly you have worked with them for 15 years and they have always issued payment after 45 days.
So, why is it bothering you now only? Is there anything else that makes you unhappy working with this client?
I'm far from having as much experience as you do, but I wouldn't advise to try to increase the rate just to try to make them pay earlier. It could rub them the wrong way. It's a big company, it will be easier for them to find a new translator rather than make a payment exception for you.
The only way to speed up the payment would be, as Tom in London suggested, to request payment via PayPal or bank transfer. ▲ Collapse
| | | | Tom in London
United Kingdom
Local time: 16:51
Member (2008)
Italian to English
Samuel Murray wrote:
....So, tell them $8300 is the invoiced amount, but that they can get a $500 discount if they pay with 14 days
WOW!!! $500 !!! No way. To me that would equate to at least a couple of days' work thrown down the pan.
In any case IMHO it would be a mistake to give a discount (of any amount) on what I have honestly earned from my hard work. And (as I've learned in the past, to my chagrin) if you give people a discount, they'll expect one every time. So you just end up charging what is, in effect, a significantly lower rate.
[Edited at 2020-10-13 15:45 GMT]
| | | | Tom in London
United Kingdom
Local time: 16:51
Member (2008)
Italian to English
For some reason my post appeared twice.
[Edited at 2020-10-13 15:48 GMT]
| | | | Steve Robbie
United Kingdom
Local time: 16:51
Member (2017)
German to English
+ ...
| Just deal with it | Oct 13, 2020 |
If it's a big business, they probably dictate terms to all their suppliers, not vice versa. You won't get far trying to get them to make an exception for you.
Anyway, a customer who pays slowly but never has to be chased is much better than one who offers to pay quickly but then doesn't. I have an agency client who pays even slower than 45 days, but they pay me a decent rate, offer me good work and always pay when they say they will. It's a happy relationship.
You c... See more If it's a big business, they probably dictate terms to all their suppliers, not vice versa. You won't get far trying to get them to make an exception for you.
Anyway, a customer who pays slowly but never has to be chased is much better than one who offers to pay quickly but then doesn't. I have an agency client who pays even slower than 45 days, but they pay me a decent rate, offer me good work and always pay when they say they will. It's a happy relationship.
You could try doing what Samuel suggests, but make sure the lowest price is equal to your normal fee, because they will probably ignore the surcharges for late payment.
[Edited at 2020-10-13 16:36 GMT]
[Edited at 2020-10-13 16:38 GMT] ▲ Collapse
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Mervyn Henderson (X)
Spain
Local time: 17:51
Spanish to English
+ ...
I don't know about the legal side of it, but it seems they are pretty cynical and ignore everything you say, so they might just ignore the whole shebang this time too, and pay it well, well beyond deadline as usual. Then they might ask for the reduction you offer even after the late payment! But big companies often plead that their system's like that, and that's the way it is, with no flexibility.
I tried this once or twice, but it never worked, and they seemingly preferred to pay m... See more I don't know about the legal side of it, but it seems they are pretty cynical and ignore everything you say, so they might just ignore the whole shebang this time too, and pay it well, well beyond deadline as usual. Then they might ask for the reduction you offer even after the late payment! But big companies often plead that their system's like that, and that's the way it is, with no flexibility.
I tried this once or twice, but it never worked, and they seemingly preferred to pay more but pay late. With the two or three companies I tried it on, in the end they were so regular it didn't matter because they were paying me late, but they were paying me on the same day month after month, so it didn't feel like a late payment in the end.
And Tom, get in quicker deleting next time, will you? I found myself reading the second post, marvelling (1) at the fact this person was saying exactly, but exactly, the same as you, and (2) at the fact he was also called Tom in London and even looked like you. A real time-waster for me, I can tell you.:D ▲ Collapse
| | | | Fabian Luttman
Canada
Local time: 11:51
Member (2003)
English to Spanish
+ ...
TOPIC STARTER | Thank you all! | Oct 13, 2020 |
Thank you all for your quick reply on this matter!
Very interesting answers...
Regarding my motives, it's not about the money, it is a matter of principles. I got pissed by their attitude and wanted to do something about it.
As many of you mentioned, it will probably be a waste of effort and time...
The best approach might be to increase my rate and offer them a discount for early payment, which they will probably ignore. ... See more Thank you all for your quick reply on this matter!
Very interesting answers...
Regarding my motives, it's not about the money, it is a matter of principles. I got pissed by their attitude and wanted to do something about it.
As many of you mentioned, it will probably be a waste of effort and time...
The best approach might be to increase my rate and offer them a discount for early payment, which they will probably ignore.
Thank you again for the great feedback!
Fabian ▲ Collapse
| | | | Tina Vonhof (X)
Canada
Local time: 09:51
Dutch to English
+ ...
I have yet to come across any large company or translation agency that gives a hoot what my payment terms are (30 days like yours). Just be happy they pay and, as Tom suggests, see if you can arrange for a different payment method. Under no circumstances offer them a discount - that can only lead to misunderstandings and wrong expectations.
| | | | Fabian Luttman
Canada
Local time: 11:51
Member (2003)
English to Spanish
+ ...
TOPIC STARTER | Payment method | Oct 13, 2020 |
Tina Vonhof wrote:
I have yet to come across any large company or translation agency that gives a hoot what my payment terms are (30 days like yours). Just be happy they pay and, as Tom suggests, see if you can arrange for a different payment method. Under no circumstances offer them a discount - that can only lead to misunderstandings and wrong expectations.
Hi Tina,
I understand your point. I prefer to stay away from PayPal, since their commission is too high, and direct deposit is not practical between two different countries (high fees as well).
I think I will follow the advice of leave it as is, and maybe increasing my fees a bit to compensate for their consistent late payment and indifference...
Thanks,
Fabian
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Samuel Murray
Netherlands
Local time: 17:51
Member (2006)
English to Afrikaans
+ ...
| A cake and eating it | Oct 14, 2020 |
Tom in London wrote:
Samuel Murray wrote:
Tell them $8300 is the invoiced amount, but that they can get a $500 discount if they pay with 14 days...
WOW!!! $500 !!! No way. To me that would equate to at least a couple of days' work thrown down the pan.
Tom in London wrote:
I would set up a PayPal agreement with them...
Sure, good idea. The PayPal transaction cost for transferring $7500 would be... between $400 and $550.
| | | | | 45 days is nothing to worry about | Oct 14, 2020 |
I do/did have clients who have 60 or 90 days payment period. I would say keeping the client who sends you regular work is much more important especially in this difficult climate.
| | | | Dan Lucas
United Kingdom
Local time: 16:51
Member (2014)
Japanese to English
Samuel Murray wrote:
Sure, good idea. The PayPal transaction cost for transferring $7500 would be... between $400 and $550.
Agreed, PayPal is hideously expensive for large amounts. I don't use them for amounts into four figures, and avoid them even for smaller sums.
Still, the $500 you suggest is 6% of $8,300, which is a huge discount. I thought typical discounts (e.g. those customarily used in the German "skonto") were of the order of 2% for 14 days or 3% for 30 days.
As others have noted, it is debatable whether large and bureaucratic companies are flexible enough to perceive such discounts to be worth the effort, so the OP probably wouldn't get paid more quickly in any case. Might work with a smaller client.
Regards,
Dan
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