By Earl Smith on
May. 04, 2010
Forums:
Three months ago I did a relativly large job for an American firm with many branches here in Germany. I have still not been paid and the claim is starting to go through the legal system. It is a lot of money for me and I had to work 28 days without rest to do the job on time.
The firm is very large with branches all over the world so I am fairly certain to get my money back. But after I get my money is it possible on this forum to name and shame these types of businesses who use us to embroider their goods and then not pay? That way we let others know not to take the work on.
Earl
Location:
United States
Re: Name and Shame
Interesting points there.
One of the problems when you live in a country which has not my native language, English; is understanding the rules. Its all in the small print. But the way things seem to work here is payment within 30 days, then a reminder is sent out , they have two weeks to pay that. If not then another reminder and then a third. After the third then the customer is responsable for all legal costs. Everybody plays by the same rules.
This is regardless if you are a small or massive company. Germany likes to keep its money under control.
After all, when you go over 30 days you end up paying interest to the banks . We have enough problems running our small businesses so why add long payment periods on top of that.
Earl
Re: Name and Shame
Having worked and still working for a large company, the ACCT Payable department is often so far behind. I don't think they were trying to avoid payment. It just takes time for the big companies to do things (partly the reason why I want to get out of corporate world). I run into this situation at my company, where the vendors complain about bills not being paid. They will get paid, eventually.....
As mentioned by previous post, talk with them and see what their time frame is, and if it turns out to be 90 days, consider whether you can work within that time frame.
Re: Name and Shame
Amazing. Just as I was getting all the legals together to go after them , I get my money. Had to wait three months for it though.
And they have offered to bring me more work...
Thanks for your comment Glenn.
Earl
Re: Name and Shame
It has been my experience that most large companies pay net 90 or some even net 120... so I didnt think waiting 90 days for payment seemed like a long enough time to begin legal proceeding. Just me. Ask them what their normal payment policy is, I bet it is 90 days. You can try to negotiate better terms next time, but honestly, if they are large enough I think they wont have too much trouble finding another supplier to work on Their terms.
Modern Embroidery Designer
volant-tech.com
volantfineart.com
Re: Name and Shame
IMHO, it is not the customer that sets the payment terms. Our invoices clearly state Net 30 days. If they want to wait 90 - 120, then in my opinion they are in default. At that point you have every right to tack on late fees. Not to say this is the right thing to do because they will probably take their business else where, but you are within your rights to do so.
Glenn
Sew Fine Designs
Re: Name and Shame
I would keep them as a customer but I would have a Heart To Heart dialog with them as to their payment schedule and their need to improve. If at all possible with them being a future customer offer them a 10% discount if their payment is received within 30 days of shipment of the order from you to them. If not received within 60 days then a 10% late fee would be in order IMO. Then 15% at 90 days. After 90 then do what you need to and drop them but let others know who they are, I would recommend that you ask for private e-mails if they want to know.
Re: Name and Shame
AS LONG AS YOU SPEAK THE TRUTH. I can tell everyone anything, as long as, at the time I said it, it was the truth. It is what we call freedom of speech in the USA. Be careful not to jeopardize the legal proceedings. Because forum boards are global, what I do in the USA may not be legal for you in Germany. Consult your legal counsel.
Good luck in collecting your money.
Glenn
Sew Fine Designs
Re: Name and Shame
Good point Robert, I didn't think of that but yes, many large companies do use a net 90 or 120 payment schedule. My bad!:o