| Pages in topic: < [1 2] | Poll: Would you normally work with an agency that uses a 60-day payment term? Thread poster: ProZ.com Staff
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Edwige Thomas
France
Local time: 16:24
Member (2014)
English to French
+ ...
Enough is enough. I'm quite surprised by the results of this poll...Didn't expect the majority of my fellow translators to accept that.
I don't know any other industries where freelancers accept such terms of payment.
| | | | | Europe: two important dates, 1st July 2017 and 1st July 2018 | Jun 18, 2018 |
https://www.lexology.com/library/detail.aspx?g=95efe342-0c1b-4afb-8612-62700305fc6f
"European Union July 14 2017
On 1 July 2017, the Act dealing with payment terms of maximum sixty days for large enterprises came into force. This law provides that large enterprises cannot agree upon payment terms of more than 60 days entering i... See more https://www.lexology.com/library/detail.aspx?g=95efe342-0c1b-4afb-8612-62700305fc6f
"European Union July 14 2017
On 1 July 2017, the Act dealing with payment terms of maximum sixty days for large enterprises came into force. This law provides that large enterprises cannot agree upon payment terms of more than 60 days entering into commercial contracts with the SMEs (small and medium sized enterprises) and self-employed entrepreneurs as a supplier or service provider.
For existing agreements between large enterprises (as debtor) and SMEs or self-employed entrepreneurs (as creditor), this new maximum payment term will apply as from 1 July 2018.
This new act is a further implementation of the European Directive late payments (Directive 2011/7/EU).
Agreements whereby large enterprises nevertheless decide to agree on payment periods longer than 60 days will be declared null and void. The payment term will then by operation of law be converted into a payment term of 30 days. Should the debtor pay the invoice only after 30 days, legal interest rate is due (by way of law) over the period exceeding the 30-day period."
Here's a source for those working in France: https://www.economie.gouv.fr/cedef/delais-de-paiement-entre-entreprises Note the finer details, such as if an invoice actually covers a number of jobs, then the due date for payment cannot exceed 45 days from the issue of the invoice: "en cas de facture périodique, le délai convenu ne peut dépasser quarante-cinq jours à compter de la date d'émission de la facture, conformément à l'article 123 de la loi n° 2014-344 du 17 mars 2014".
This, in fact, puts many agencies on the wrong side of the line in France. Although the various rules 'n' regs do not explain for each set of circumstances, when the number of days starts to run, in the case of "périodique" (or "récapitulative") invoices, they are theoretically to be paid within 45 days of issue. This method of invoicing is already an exception to the general rule in France (and Europe?) that you have to submit an invoice within 15 days of having provided the service.
So what's the problem with this method of invoicing? If you do a big job at the start of January, invoice it along with other jobs at the end of January, you are not paid until the end of March or beginning of April. Many agencies require their translators to invoice at the end of the month. I can understand them finding it treat their invoices in batches, but there is a cash management interest for them here too. Agencies working with big clients tend to accept (have to accept, to get the contracts?) rather lengthy delays themselves, particularly if they work with government and state institutions, notoriously the least respective of payment deadlines. That is the agency's problem though, not ours.
I find it extremely insulting to have to wait three months to be sure of being paid. Some agencies who work to that rule pay exactly on time and have understood that even if they are not paid, the doctrine of privity of contract means they still have to pay you. That's all well and good when they can pay. But what if one day they cannot? Some big agencies have run into real problems and disappeared overnight. If you work regularly for the agency in question and for a similar amount of work, this may not be a problem. However, if the agency runs into cashflow problems, you can actually find yourself with almost three month's work unpaid. Not a happy situation at all. Best avoided. So yes, 60 days is way too long. No more, for me!
[Edited at 2018-06-18 22:46 GMT] ▲ Collapse
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...how many of you are so nonchalant about accepting this awful practice. No wonder, we're offered subpar rates, forced to work insane deadlines, and then wait for payment after 60-90 days if we're lucky and after chasing after payment. Wow. You go visit the dentist or ask a plumber to fix stuff at home, and then you tell them 'yeah, I'll pay you in three months', see what reaction you get. Yep, we translators deserve a lot less because we're pushovers and can roll with the punches. I can eat ca... See more ...how many of you are so nonchalant about accepting this awful practice. No wonder, we're offered subpar rates, forced to work insane deadlines, and then wait for payment after 60-90 days if we're lucky and after chasing after payment. Wow. You go visit the dentist or ask a plumber to fix stuff at home, and then you tell them 'yeah, I'll pay you in three months', see what reaction you get. Yep, we translators deserve a lot less because we're pushovers and can roll with the punches. I can eat canned tuna for 2 weeks, no problem. Sheesh. ▲ Collapse
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In any business, customers do not determine when they should pay. So the idea of a customer "using" a payment term does not make sense, unless one decides to allow one's customers to dictate when they plan to pay. But if a new client were to suggest this, no, I would probably not work with them. it is not just the payment term, but also the attitude that thinks it can dictate such terms. With longstanding good clients, all kinds of arrangements can be made, based on circumstance.
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Mario Freitas 
Brazil
Local time: 11:24
Member (2014)
English to Portuguese
+ ...
| Well, sort of | Jun 20, 2018 |
I don't like the idea, but I currently work for two agencies that ask for one invoice per month and then pay 30 days later. So, considering the date of delivery of the jobs and the date of payment, it's 30-60 days.
These are two exceptions for clients that send me jobs regularly and in a decent volume.
If a new client states they pay in 60 days, they'll have to find another translator.
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