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How Do You Manage A Payment Plan?

Thread title: How Do You Manage A Payment Plan?
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08-29-2012, 03:35 PM
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BoyWonder is offline BoyWonder
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  Old  How Do You Manage A Payment Plan?

I received an inquiry for a project for a project. The potential client wants to work out a payment plan, saying that money is tight. He was thinking 50% up front, and then the rest 1 month later. Should I accept it? How do you make sure that you end up getting paid?

08-29-2012, 03:59 PM
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His financial situation is his problem. If he wants to pay in parts he needs to get a real creditor and work with them. It's way easier to run on you than a bank.

I make sure I get paid by not giving the work until they give full payment. In instances I don't have that sort of control over I use ioncube to encode the files until final payment is made.

08-30-2012, 12:05 PM
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I agree with VG that you should not be put in the position of Banker for a potential client. But what being Banker means must be dependent on norms within in the community of whatever-you-do. A 50% inception payment, with balance due at the end of the project (or, if it's a long project, 2 or 3 payments tied to project milestones) is standard practice for me and for most of the professional practitioners with whom I work.*

I deal with problem clients by adding a late payment fee to invoices that remain open after 30 days. (This practice works best if your contract says you'll do it.) You might consider
  • increasing your fee slightly to accommodate your greater risk
  • asking the client to place the funds in escrow, which would let you know the money was there)
  • ask the client to give you a check for the outstanding amount, or a little more. If at the agreed time he doesn't pay up, you cash this. If it bounces ...it's considered fraud.
  • or, of course, you could just say, "sorry, I'm not in a position to do this right now."

*In fact, if someone told me I had to pay in full up front I'd probably look for another provider. As the consumer, I'd have no leverage once I'd paid in full and if I had questions or problems the provider could easily ignore me. (It's happened.)

08-30-2012, 09:11 PM
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Lowengard I think you misunderstood me. I meant 50% upon project completion, and then the rest 30 days later (after his paycheck). As a side question, I didn't take the job yet, saying that I would need to consider it, is that bad business practice instead of just giving a yes or no, because it has already been a day.

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08-30-2012, 09:22 PM
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Always give an answer, it is extremely rude to say that you'll get back to them and not. They deserve to know their position as soon as possible.

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08-30-2012, 09:47 PM
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I was asking if i am not sure, should just give a quick no, i have to start being more clear

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08-30-2012, 09:56 PM
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In general you should turn projects down that you have a bad feeling about, especially when it related to shady payment dealings. No need to drag anything out, a quick and non-descriptive no should be fine.

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08-30-2012, 10:21 PM
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Thanks, btw, now that the school year is starting, and i'm going to stop freelancing, I just want to really thank you for all of your help in the passed few months. I couldn't have done anything without your help and guidance.

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