Just wanting to get some perpsectives on how other photographers handle late payments. Fortunately this is not an issue I have dealt with previously. However recently I licensed usage rights for some photography (previously shot for a different client). It wasn't a huge fee, but the client has not provided payment within the 30 days I specify on my standard invoice. A week or so after the 30 days I sent a polite request to their accounts payable person asking about it, and received a polite email back saying sorry for the delay, they are working with a manager to try and authorize the payment.
It's now approaching on 60 days and I haven't heard anything back from them. So I'm getting ready to send another email. I thought it would be interesting to see if anyone else has strategies for dealing with these kinds of scenarios?
StanOPhoto wrote:
I think you should be sending an email or making a phone call more often than every 30 days.
Yes we are in agreement there. Any further suggestions?
I would follow up with whoever contacted/contracted you in the first place to see why the invoice hasn't been approved. I find that mine sometimes just "get lost" on someone's desk (even though they are PDFs attached to email).
If you have a contract with them, does it address late payments, e.g.$xx per week/month or a percentage of the total owed? If not, I would suggest it should, so both parties have a start point if this happens in the future.
Even if you don't collect extra $'s, just raising the late payment clause may light a small fire for them to make the payment to you.
Just my $0.02....
chittybb300 wrote:
If you have a contract with them, does it address late payments, e.g.$xx per week/month or a percentage of the total owed? If not, I would suggest it should, so both parties have a start point if this happens in the future.
Even if you don't collect extra $'s, just raising the late payment clause may light a small fire for them to make the payment to you.
Just my $0.02....
My original invoice did not have a late payment clause. I did not have a lenghy contract with them as it was just a matter of them wanting to license rights to existing photographs I had shot for another company. I gave them them the licensing terms and cost, they agreed, so I sent them the photos and the invoice. They seemed like a reputable company so I didn't think it would be a problem getting paid. Probably too late to bring up a late payment penalty now?
Gee - they haven't paid you, therefore they have not lived through the bargain, and are using you images without a contract, and are therefore in violation of copyright. Politely inform them that if they don't pay, you WILL enforce copyright
A lot of large companies have a payment schedule, depends on when in the timeline your invoice shows up...maybe they always pay at 45 days or 60 days or on the 15th of the month no matter what your invoice says.
Be careful what you what you call your late fees, you can get into murky legal areas if you call it interest...
Before you go swinging the "I WILL enforce copyright" hammer be aware that copyright violation is a federal case and will cost about $10k to get started. Better to treat it as a business thing rather than a copyright thing. For example tell them that since they have not paid they don;t have the right to use the pictures until they pay.
Most AP folks are pretty decent and want to pay your invoice, a phone call works better than an email. Usually the invoice has been waylaid on the way from your contact to the AP person. Next time email the inv to both people.
artd wrote:
My original invoice did not have a late payment clause. I did not have a lenghy contract with them as it was just a matter of them wanting to license rights to existing photographs I had shot for another company. I gave them them the licensing terms and cost, they agreed, so I sent them the photos and the invoice. They seemed like a reputable company so I didn't think it would be a problem getting paid. Probably too late to bring up a late payment penalty now?
Unfortunately, if it's not in writing it can't carry any weight (generally).
Time to be the 'squeaky wheel that gets the grease'.....daily calls/emails to follow-up, keep a record just in case it ends up in small claims...hopefullly not....
Some Companies just 'slow pay' as a normal course of business.....earns them interest as long as it's in their account and not yours.
Good luck.
A few thoughts: Your contract should read that image use is not granted until payment is received in full. If they don't pay and use your image, the contract should spell out a fine of up to $250,000 and all legal fees. There's a lot of thoughts floating around on late fees. Some photographers don't like them. In all reality, are you going to call up a client and demand more money for being late? Probably not unless you don't want to work for them again. Some photographers are going for an early payment discount. If they pay in 30 days they get X discount. Some companies take for freaking ever to pay and I constantly hear people moaning about this so even though with a slight discount you lose a bit, you're not chasing and chasing and chasing. However, it sounds like this company doesn't have all their i's dotted so I'd be a bit worried.
cineski wrote:
A few thoughts: Your contract should read that image use is not granted until payment is received in full. If they don't pay and use your image, the contract should spell out a fine of up to $250,000 and all legal fees. There's a lot of thoughts floating around on late fees. Some photographers don't like them. In all reality, are you going to call up a client and demand more money for being late? Probably not unless you don't want to work for them again. Some photographers are going for an early payment discount. If they pay in 30 days they get X discount. Some companies take for freaking ever to pay and I constantly hear people moaning about this so even though with a slight discount you lose a bit, you're not chasing and chasing and chasing. However, it sounds like this company doesn't have all their i's dotted so I'd be a bit worried....Show more →
Good point about the usage rights granted upon full payment of the invoice.
Some companies have a policy of taking any discounts but some take the discount and slow pay anyway.
Other than being slow and unresponsive to passive emails, I don;t see the client not having the i's dotted, but the OP needs to add a few things to his T&C.
Before you go talking about "a fine of up to $250,000 and all legal fees" please have a lawyer familiar with IP law to go over it.
Daily calls will eventually get you paid, but better to make friends with the accounting department than become known as the desperate pest who called three times a day.
Have a little patience, some clients don't pay until their client pays them and GM used to pay its vendors quarterly. So a job shot in January didn't get paid until April.
Regarding any legal action, I am not likely to go there, especially since the amount in question is not significant enough.
Regarding usage rights granted upon payment of invoice, I typically don't include that type of language because I've had several instances where the client was desperate to use the images right away. Recently for example I shot a job for a client that needed the photos for booth posters at an upcoming trade conference but weren't able to schedule the photoshoot until the last minute due to the construction schedule of the project they needed shot. If they were to wait until their accounting department got through processing the invoice and sending payment they likely would have missed their production deadline. So while technically it's probably a good idea I usually take it on good faith that the client will pay (and in this instance they actually paid relatively quickly and I earned an appreciative client for my willingness to accomodate their schedule).
I guess from a philosophical perspective I think that I am in the business of providing more than just good photographs, I'm in the business of providing good service. So I don't want to come across as too brusque or heavy handed.
Having that line in your T&C doesn't limit the use of the photos, only as, IMO something that you can use if they end up not paying you in a reasonable amount of time. I have had clients use images on their website within an hour of delivery, obviously before paying the invoice...
Micky Bill wrote:
Having that line in your T&C doesn't limit the use of the photos, only as, IMO something that you can use if they end up not paying you in a reasonable amount of time. I have had clients use images on their website within an hour of delivery, obviously before paying the invoice...
Understood. But if the client does want to use the photos immediately, and you have a line in there that says image usage isn't granted until payment is received, and the client sees that, then you have to explain to your client that you don't really mean it when you say that....
I suppose you could just as easily say that usage rights are void if payment isn't received within the specified timeframe. But...wouldn't that already be assumed?
Never assume anything, If they actually read the T&C then they would know that there is a consequence for failure to pay.
You could add a line in the usage about you are approving the immediate use of the images contingent on payment within 10 days or 30 days...maybe 10 days grace period would be best cuz if they are in a hurry to use the pix they should be in a hurry to pay for the pix as well.
RING them and make sure you speak to the person in charge.
If they tell you they have to talk to xxx or follow it up, say thanks, I'll give you a call tomorow to see how you went. And then ring the next day wether they say not to or anything else and keep ringing in a very friendly, lighthearted way till the payment arrives.
I would also ask them for a direct deposit to svae them witing a cheque or other excuse for further delay. If they tell you they it has to go to accounts payable, as who the person is that looks after than and ask to speak to them.
Being afraid of loosing work is the worst thing you can do.
Years ago a mate and I shot for a big publisher here. They were known for slack payment and a lot of shooters would not work for them for that reason. I hounded them like dogs and withheld submissions till payment was made.
The editors are not the ones in a big company writing the cheques, the accounts payable is and they are not the ones who select who's work they use so they are irrelevant to the work you get in future.
By withholding work I did upset some editors but more with the accounts people who they went and screamed to in person moreso than with me. I explained it would be stupid of me to keep giving work to non paying customers and my accountant was at me over it so I hoped they understood which left them no choice BUT to understand and chase up payments on my behalf.
My friend on theh other hand thought I was cutting my own throat and was slack and easily fobbed off over the payments owing him. He'd get about 3 in 10 and a lot of rubbish excuses for the rest. It ended up he had payments owing well over a year and by that time the amount of excuses open to the publishers of lost, never seen, had already been sent and would have to be looked into excuses were endless.
By the time we stopped shooting for them, I had all my money and he was over $4K in the hole. Its still a touchy subject I avoid with him. I never once got a submission knocked back even though I got pretty heated with the accounts people at times.
They were one of the biggest publishers in the country and when I took out an ad in another of their magazines, I refused payment till they had debt collectors on to me. I thin sent a counter claim for the money I was owed and they dropped it like a hot coal and I got my cheque pronto.
You have to stay on top of them like a fat kid on a cupcake or you'll loose every time.
Even if it is not in your contract or your original invoice, late fees are a customary way of doing business and therefore excepted. Is this a large corp or an independant owned business. If it a large corp, some may only pay bills once a month or even once a quarter. Large corps dont really care what you threaten them with. If it is an independant owned, you may have a tough time collecting.
I would send a certified collection letter. If no results, your next step is a collection service or small claims court. I would also revolk the image rights. That part I would make sure and add to your next client contract
