Account customers - charging interest

[Steve the DJ]

I think every business makes decisions for their own reasons and "ignores the rules" when it suits them and you have to either accept them or not when you work with them.

Personally I wouldn't deal with them on those terms regardless of the contract size or proposed turnover nor would I accept that length of wait to get paid as a DJ by an agent.

[Danno13]

I've only had this once when it was supposed to be 30 days - started chasing as soon as it lapsed and got passed around and promised the payment etc. After 50 days I sent a letter threatening to add interest (referencing my terms & conditions) and the cheque arrived within the week!

[Corabar Entertainment]

As everyone has already said, you're in the position of 'take it or leave it' really.

Having said that, I think almost all of the big chains these days have '60 day payment terms' stipulated in their purchase orders (and completely ignore the contracts they have entered in to). I am fortunate in that the main hotel that we provide DJs for are very good at paying. Our contract says 30 days; their PO states 60 days, but they usually pay within 14 days (although it's a little longer after Christmas because they are playing 'catch-up')

Like you, Darren, I am in the position of having to pay all the DJs before we get paid which means that when everyone on here is going on about being flush and having the money from Christmas to buy new kit, etc, I'm sitting here penniless and biting my nails!



Pain in the bum? Yes
Fair? No
Fact of life? Unfortunately

[Shakermaker Promotions]

I was told by a manager (just before he left at christmas) at a previous hotel residency around 3 years ago that (this hotel in particular) would keep away from paying for as long as they could so that they could get as much interest accumulating in the bank. He also said that there was enough petty cash in the venue that they could, in theory...pay the DJ on the night but the head office didn't want that happening.

I took this on board and at Christmas in particular, I invoiced the hotel for 16 Christmas Parties after the first night which was in Mid-November with the understanding that everything would be paid a maximum of 14 days after the last party. It didn't happen. I ended up getting my payment in the middle of February and there was nothing I could do. The following Christmas I did the same thing and the payment arrived end of January. The last year I was there (last year), I got it before Christmas and that was only because I did a private party for a guy who worked in the accounts department who did me a favour because he was also leaving.

When you are a small business, stuff like this really doesn't help. I went through 3 christmas with no money as I had to pay the bills, other DJ's etc...It was hard. I'm sure it's the same for Multi-Ops although their cashflow may be a lot better than mine...well, more likely it is.

[Shakermaker Promotions]

Angela, I was posting at the same time as you and the penniless comment really hit the nail on the head.

[Steve the DJ]

Like you, Darren, I am in the position of having to pay all the DJs before we get paid which means that when everyone on here is going on about being flush and having the money from Christmas to buy new kit, etc, I'm sitting here penniless and biting my nails!

When doing my recent research this was probably the only real advantage I could see of being an employment agency instead of an employment business because if you don't get paid then you don't have to pay anyone until you do.

Probably wouldn't do your reputation any good though...

[CRAZY K]

.

Can the offer a way around it, send / date the invoice when they place the booking so the 60 day period ends close / on your due date?

I would imagine the Accounts Department would be way too smart to fall for that--they get briefed on all these dodges.

Probably sacked if they allow it

Always worth a go though

[CRAZY K]

As long as they don't have a track record of not paying I'd "suck it up and see".

As most of the events are during xmas? prehaps get all them done and advise them that if they want to book next year that you'll have to bring the payment date forward?

Its a new client so Darren doesnt have a track record.

Trouble is its like Marks and Spencer with suppliers--they agree one thing--then move the goalposts--why do they do that--because they can bully the suppliers who have competitors just waiting for the chance to get in the door

[Creature]

how about you putting your invoice in 30 days early so that they pay 30 days after ??

or to be really cheeky send in the invoice 60 days before the last gig

[Solitaire Events Ltd]

how about you putting your invoice in 30 days early so that they pay 30 days after ??

or to be really cheeky send in the invoice 60 days before the last gig

For Christmas, all of my invoices normally go in the middle of November. Unfortunately as they don't always confirm dates until the last minute, it's not always possible.