[Freelance] Receiving Payments - What are my options now?

[TexasAg98]

Not sure if this was the right place to post this, but

 

I did a job in late May, sent out the invoice on June 5th. Two "bank" errors and two bounced checks later I still have not been compensated. Now I've been told it'll be another few weeks before they receive more funds.

 

Just wanted some advice as to what options I have or should take soon.

 

And, yes, I sent them the final images on the day of their meeting. I didn't think it would come to this, they are a fairly large company with offices in New York, Austin, and Los Angeles. I even spoke to the president of the company in New York and he said that if the funds were in the Austin branch, then they couldn't cut the check. I can't believe that a company this size isn't still cutting paychecks every two weeks.

 

Thanks.

[kippu]

i recently went through such an experience and gave up all hopes of getting back the money ....then I started posting the experience with their company's name at my blogs and complaintsboard and other similar sites , finally they paid up and asked me to remove those posts , which i have done .... it helped me , of course if you had an agreement signed then you can go the legal way I suppose

[Tom Hamelrijckx]

1- don't let it get on your nerves, just assume you will never see a penny of it

2- think out a strategy to avoid it for next time (fa, all my invoices go through another organization that has a legal department)

3- call them once every week (the same contact if possible), there's a fair chance they'll get sick of it at the end...

 

Good luck with this...

[TexasAg98]

Thanks.

 

What legal actions can I take?

[ikinman]

Not to be flip, but the first step in getting legal advice is to talk to a lawyer. Before you do that, make certain to have copies of your contract (you do have one, right?) and all correspondence with your client.

 

Your lawyer will be able to tell you what your options are.

[TexasAg98]

Not to be flip, but the first step in getting legal advice is to talk to a lawyer. Before you do that, make certain to have copies of your contract (you do have one, right?) and all correspondence with your client.

 

Your lawyer will be able to tell you what your options are.

 

Yes, I understand. I was just looking for any other routes before going to a lawyer that I can't afford.

 

Thanks to everyone so far for their advice.

[ikinman]

Mazinger made the excellent point of calling once a week. Do that without mercy, and do it at the beginning of the week, not the end. People who get unpleasant calls on Friday tend to blow them off; people who get unpleasant calls on Monday are more likely to put the issue on the top of their week's 'things to do' list.

 

If that doesn't work, then start calling twice a week.

 

Seriously, the squeaky wheel gets the grease. And if they are rationing out their payments, it's a good bet that the ones who scream the loudest will get to the front of line. That's how credit card companies operate, for instance.

[Noise]

We moved to a pay on delivery system some years ago and is the single best thing that we have done with regard to getting paid.

 

When you get the appointment signed, mention that you operate on a pay on delivery system (refering to the line in your appointment) - we have found all clients receptive to that but you must do it at the beginning.

 

Only release the hi-res unwatermarked imagery when you have received payment.

 

For projects over a certain amount, request staged payments and set out when these payments are to be made at the beginning of the project.

 

With regard to your legal position, I cannot comment but, we avoid this like the plague as it will incur hefty costs and more importantly, your time and stress in pursuing it when you should be doing fee paying work.

Edited July 22, 2009 by Noise

[SandmanNinja]

Debt collection agencies here will gladly take jobs like this. They have a lawyer on-staff and all he does is write letters to scare people that owe other people money.

 

They take 10%-25%

[TexasAg98]

10% might work for me. I'll look around, thanks.

[Brian Smith]

one word - lien

[TexasAg98]

Forgive me, this is the first time this has happened to me.

 

If they signed a contract, the rendering was used for a proposal/bid that they didn't get, so there is nothing to file a lien on correct?

 

I spoke with them today, and they said that they had a stack of bills and as money came in they would take care of them. He told me it may be a couple weeks.

[TexasAg98]

Does anyone have a link to a contract they use, if there are any GOOD free ones out there, or how did you come about your contracts?

 

I used one for a while, but it seemed to make my clients uneasy. I thought maybe it was too lengthy and too much legaleese.

 

Thank you.

[Ky Lane]

I advise my clients that I retain copyright on all of my work until full payment is cleared. And that they will receive a cease and dissist notice if they have used my images without my authorisation. That usually scares them into paying.

[Archiform 3D]

I hate to tell you, but the legal way to get money back is a waste of time. I have learnt to simply not allow yourself to be in a position to be owed money, or at least not much.

 

We always get a down payment, normally of 50% and unless there is a really big reason otherwise then I get payment BEFORE delivery. The complain about it sometimes but to be honest I have lost so much money when I didn't do it this way that their complaints fall on deaf ears.

[TexasAg98]

Live and learn.

 

It's my first time. I'll be better prepared next time.

[Stan Zaslavsky]

hi Joel,

as many have said previously - the legal way for recovering payment is far too costly and typically the clients might realise this and will hold off on payment because they are prepared that you probably won't go the legal route.

 

the best way i found is exactly what Steve has just mentioned - get 50% upfront, and then the balance before delivering high res images. Only for a select few clients who have proven that they pay on time - do they get the preferential treatment.

 

and for the ones owing you money - just call once or twice a week until they pay - which they will because otherwise they know that you will call and pester them for it

 

good luck - i'm sure its just a thing that this client is going through but they will pay eventually.

[Brian Smith]

if you want a contract, check out week 4 of our tutorials...

 

http://3dats.com/tutorials.asp

 

There's a slightly improved one with commentary in our Intermediate to Advanced book.

[Noise]

In the UK we are a member of the Federation of Small Businesses. For a small joining fee there are huge benefits including free 24/7 legal advice.

 

I don't know if you have the same thing in the US but, have a look and see.

 

We also used a debt recovery agency but they only enabled us to go so far and then the next thing is the legal route which we have not pursued so far due to needing to focus on project work.

 

I would suggest that instead of following this matter to the courts - drop it and put it down to experience. Unfortunately, there are people out there who are scum and don't seem to care who they harm.

 

For first time clients - watermark everything and be very clear about how you intend to get paid. If you are suspicious of them, have a check done on them to see if they have a dodgy history.

 

Get your appointment document to have all your stipulations in it but don't make it scary. At best, as mentioned, if you are super careful - get a percentage up front and if the project goes over for example $4000 get staged payments. This is particularly important if the project starts to become longer than anticipated.

Edited July 25, 2009 by Noise

[Noise]

There is one other option however, depending on what you are comfortable with (and I didn't say this !).

 

A visitation from the heavies !

Edited July 26, 2009 by Noise

[jkletzien]

Umm, this isn't even at 60 days and you're looking to have a lawyer involved? I think you're a little quick on the trigger, as they may be on their way to going under, and will shaft you, but they also may just be having some cash flow issues that they're ironing out. And in less than 60 days, I'm not sure how you know.

 

In either case, my suspicion (and I could be wrong) is your services cost more than their Fedex bill, but less than a month of their rent - ie. it isn't an insurmountable amount and they'll pay it if you're noisy as Ian suggests. I would call them, but I would also offer them some creative options like - installments, letting them pay you with a credit card (or if you don't take credit cards (we don't) buying you stuff on their credit card you were gonna have to buy anyway - like software licenses, or your mortgage). If it is a cash flow issue, than a credit card should be something that will be way more comfortable for them to break out.

 

If they are as big as you say, I can't imagine you're pleased about antagonizing them, and all but assuring you'll never be hired by them again, so I'd try real hard to be vigilant, but respectful and give them some way to pay you that works for both parties.

 

If all that fails, sending it to collections, or small claims court is possible, but it should be a last resort as architecture is a pretty small community and word may get around that you're not playing nice. Not that you aren't in the right, but the story won't get spread from your point of view.

[Brian Smith]

I have to agree with Jon...it's way to early to get nasty. Especially if they aren't ignoring your calls/emails. This isnt even too abnormal in a good economy.