Agency delaying payments severely due to coronavirus Thread poster: Alexander Shanturin
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How widespread is this situation right now, when an agency delays payment to freelancer, referring to non-paying end clients due to coronavirus? How do you deal with them?
| | | | | Good question for a survey | May 15, 2020 |
So far all my clients have been paying on time and one of them has even been paying two weeks earlier than usual.
With all the billions of government credits available to keep businesses running everywhere, it doesn't sound like a good excuse that an end client is paying late, unless the agency is located in a country that doesn't help its businesses through this. I would certainly ask the agency to justify the situation and ask them which measures they have taken. If you can’t ge... See more So far all my clients have been paying on time and one of them has even been paying two weeks earlier than usual.
With all the billions of government credits available to keep businesses running everywhere, it doesn't sound like a good excuse that an end client is paying late, unless the agency is located in a country that doesn't help its businesses through this. I would certainly ask the agency to justify the situation and ask them which measures they have taken. If you can’t get a satisfactory answer, you would have to use the normal debt collection procedures. ▲ Collapse
| | | | RobinB 
United States
Local time: 01:40
German to English
| Definitely a danger sign | May 15, 2020 |
Alexander Shanturin wrote:
How widespread is this situation right now, when an agency delays payment to freelancer, referring to non-paying end clients due to coronavirus? How do you deal with them?
A translation agency that doesn't have enough cash on hand to pay its suppliers is dangerously undercapitalised, in my view. Evidently this agency thinks it can effectively bank with its suppliers. There's probably little you can do at the moment other than to issue a dunning notice (in which you refuse to accept any link between payment by the agency's client and payment to yourself) and start applying default interest, as allowed by law in the UK, presuming that you don't want to work with them again. That also reinforces your claim to payment. Plus of course the usual negative comments on the Blue Board, Payment Practices, etc.
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None of my clients have changed their payment terms because of the coronavirus and one of them (an agency) took exactly the opposite approach: they decided to pay their translators early than usual (30 days instead of 60).
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DZiW (X)
Ukraine
English to Russian
+ ...
| Rule #1: Render unto Caesar what is Caesar's | May 15, 2020 |
It's but a blunt lie for (1) agencies must have their own budgets and safety nets, (2) usually clients pay them in advance, (3) the risk management and payment is their direct liability too, and (4) as agreed, you tried hard to deliver the best service for the money, so it's NOT their money--any issues and lame excuses are none of your concern for they must timely pay your due for the fair job.
No matter 'covids', hypes, or 'act of gods' because everybody is affected.
| | | | | Widespread Late Payments | May 15, 2020 |
Late payments must be widespread. One of the companies I'm having trouble with is *extremely* well-capitalized. That company is simply throwing freelancers and staff under the bus. I've been through it with them in the past and it's impossible to deal with them. The company would never blame it on the pandemic. I've been patient with the two other companies that were late in April and now I have their payments. I won't work for one of those companies again, that company did this to me once over ... See more Late payments must be widespread. One of the companies I'm having trouble with is *extremely* well-capitalized. That company is simply throwing freelancers and staff under the bus. I've been through it with them in the past and it's impossible to deal with them. The company would never blame it on the pandemic. I've been patient with the two other companies that were late in April and now I have their payments. I won't work for one of those companies again, that company did this to me once over 15 years ago, so it won't happen again. They're in New York and said it was due to the pandemic. Another agency said that I wasn't paid on time because clients aren't paying them on time. This company wasn't acting in bad faith. I keep good records and I'm persistent and patient. ▲ Collapse
| | | | RobinB
United States
Local time: 01:40
German to English
| Clients pay in advance? | May 15, 2020 |
DZiW wrote: It's but a blunt lie for (1) agencies must have their own budgets and safety nets, (2) usually clients pay them in advance,
I agree with your other comments, but I've not heard of clients paying agencies in advance, at least not on this planet. I co-owned a translation boutique in Germany for some 20 years, and I can't recall anybody paying us in advance, at least in full. From time to time we agreed a partial advance payment for a particularly large project, but that was very much the exception. Our golden rule was always to have enough cash in the bank to pay freelancers. That's also what overdraft facilities are for in an emergency. And with payment terms of, normally, 30 days, it's perfectly possible to maintain a healthy cash float to pay staff salaries, freelancers, rent and other office overheads, taxes, etc.
| | | | | paying in advance (RobinB) | May 16, 2020 |
RobinB wrote: DZiW wrote: It's but a blunt lie for (1) agencies must have their own budgets and safety nets, (2) usually clients pay them in advance, I agree with your other comments, but I've not heard of clients paying agencies in advance, at least not on this planet....
I don't check how my agency clients do their business, but one of them explained their policy to me. After I gave my quote, they explained the slightly longer wait for the go-ahead by saying they were still awaiting payment. They don't give the go-ahead for a translation until they have been paid. Canada is still on this planet. 
My agency clients have been paying me a bit earlier than usual, or the same.
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DZiW (X)
Ukraine
English to Russian
+ ...
| Risk management: The Earth is quite big and round | May 16, 2020 |
I have never directly worked for agencies, let alone many things might have changed drastically, of course. Some ten years ago, rather many CIS (ex-USSR) agencies copycatted European counterparts, demanding prepayment at least as ‘insurance’ and ‘nonrefundable fees’ either by installments or in full.
At that time I was working with colleagues and one of our prospects complained of agencies stating that if one knows and accepts the terms, he is strongly recommend to pay immed... See more I have never directly worked for agencies, let alone many things might have changed drastically, of course. Some ten years ago, rather many CIS (ex-USSR) agencies copycatted European counterparts, demanding prepayment at least as ‘insurance’ and ‘nonrefundable fees’ either by installments or in full.
At that time I was working with colleagues and one of our prospects complained of agencies stating that if one knows and accepts the terms, he is strongly recommend to pay immediately in full to prove his ‘seriousness’. Besides some $0.35/word they imposed ‘overtime’ (a rush job in their “priority” queue), ‘wordcount’, ‘support’, ‘ISO-GOST’, ‘certified’ selection, and other fancy services, including 5% extra for postpayment... It was rather common, though it may have to do with specific agencies and regions.
As far as we had (1) qualified specialists in the fields who could (2) notarize the papers and (3) easily afford 4000 words a day (4) with proofreading, after a short promo (real-time translation and consulting), the prospect signed a typical contract and he was happy to pay us 100% in advance. It’s pretty ok, considering it made about 40% of ‘best’ agency’s bid.
I don’t think it’s too old news about a man in a case, but the point is that pandemic or something affects ALL the people, not only some middlemen, so no lame excuses would do. ▲ Collapse
| | | | | #Payment on time | May 17, 2020 |
So far my clients work with respect, payment is being made on time, as always ( 30 days)
| | | | | What goes around comes around, they say | May 17, 2020 |
Sometimes people have to check their own standards of integrity - just to make sure this is not the reason why certain things happen in their lives.
Nothing personal, just a remark. You just reap what you sow.
[Edited at 2020-05-17 09:24 GMT]
| | | | | When clients are individuals, yes, they have to pay in advance | May 17, 2020 |
RobinB wrote: DZiW wrote: It's but a blunt lie for (1) agencies must have their own budgets and safety nets, (2) usually clients pay them in advance, I agree with your other comments, but I've not heard of clients paying agencies in advance, at least not on this planet.
Well, if those clients (of the agency) are individuals - think about translation of personal documents, birth/marriage/death certificates, diplomas etc. - the agencies usually require advance payment. Yes, on this planet.
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Jo Macdonald
Spain
Local time: 08:40
Italian to English
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One was solved mailing the CEO.
One was solved with a monthly payment plan.
One was solved by politely insisting.
All solved so far with patience as these are not easy times.
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