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Getting Paid                 Return to Views Directory Page
The purpose of being in business is to earn money.  And after you earn it, you have to collect it.    Today, more than ten or twenty years ago, I hear businesses grumbling about the difficulty of collecting what is owed them.  And the smaller the business, the louder the grumbles -- because just one or two unpaid or tardily paid invoices can affect the cash flow of a small business more severely than that of a large business AND because small businesses have less leverage to use in enforcing collections than large ones do.

As a small business owner, I've had my share of collection problems.  I've only been stiffed twice, but dozens of times I've been left waiting way past 60 days for a net 30 payment to arrive.  Sometimes it's the client's fault; sometimes it's my fault.  Most often, the blame belongs somewhere in between.  And what I've learned is that getting paid on time is largely a matter of making arrangements for getting paid on time.

Here are some suggestions:

• Know the client's purchasing and payment policies before you take on a job.  Do you have to have an approved purchase order before you can begin work?  Can you get a retainer up front, bill net 15 days or collect on delivery, particularly if you're working with the client for the first time?  What information has to be on your invoice?   Can you fax in your invoice, or does the company require a mailed copy?  And whom do you send it to?
  
• Inform the client of your billing policies up front.  If you bill in phases, if you charge interest on past due accounts, if you give discounts for prompt payment -- let the client know.
  
• Talk to the accounts payable supervisor.  When you're a writer, you're not working with the person who pays the bills.  You're working with a project manager, media specialist or producer who turns bills over to someone else to be paid.  Deal with that someone else.  Make sure that whoever is going to cut you a check understands and will follow the arrangements you've made.  The biggest cause of delayed payments is the writer and the project manager agreeing to terms that violate the company's payment policy or that accounts payable can't follow.
  
• Follow the rules. Once everyone involved has agreed on terms and procedures for invoicing and payment, follow them.
  
• Follow your invoices.  A few days after submitting an invoice, telephone the person you sent it to.  Verify that he or she received it.  It's a telephone call that will: 1) let you know immediately if your invoice is "lost in the mail," and 2) remind the recipient to begin processing it immediately.  A week later, check in with the accounts payable supervisor to make sure your invoice has made it that far and to get an expected payment date.
  
• Check immediately on past due invoices.  When I bill net 30, I telephone on the thirtieth day from the date of the invoice to check on the status of payment.  Most companies and government agencies issue checks 30 days from the date they receive an invoice (not 30 days from the date the invoice was written and mailed), but a phone call lets me know when the check will be in the mail or if there are unexpected delays.

Writing is great work, and very satisfying.    Getting paid for it is a large part of that satisfaction.

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