As a contractor, how long would you work without payment?

[laura888]

It's been over 60 days since I submitted an invoice. I used to work for the company as an employee and had no problems. I generally like the people there and trust them. they are a large company and I know they have the money.

But now no one seems to give me a straight answer as to why payment is late.

would you keep working on the assignment, or would you say "pay up or no more work from me"?

[creativelcro]

1. do you have a contract that says 60 days ?

Most companies I know have in their contract "within 60 days after invoices are submitted"

[laura888]

3. contract says 30 days

thanks for your response - I looked specifically for that language and found the answer.

[Bronco69]

2. Submit another invoice

only show it with an added expense. Interest due. If it is a large corporation and you trust them, they will certainly understand that you don't do business for free. :-)

[laura888]

4. good idea! n/t

[whatelseisnew]

8. In the future include a late fee clause in your first invoice

I usually set it at 20% for smaller contracts and 10-15% for larger ones

[ayeshahaqqiqa]

5. I think the standard practice

is to submit invoices every month for three months. After 90 days, you should send a certified letter that must be signed, stating you wish payment or you will take them to court.

If the money involved is less than $5000, you can take them to Small Claims Court. Filing fees here are $35, with an additional $25 for service of papers. When you go to court, be sure you have all your papers, ie. your contract with them, the invoices and, most importantly, the certified letter (they could argue they never got your invoices but not the letter). Also have some sort of proof that you did the work. If you have all this, it shouldn't be difficult to collect, if it goes that far.

Good luck.

[laura888]

6. would you continue to work in good faith

assuming all is well?

[kcwayne]

7. CFO's are rewarded for cash management

Their goal is to get customers to pay them as quickly as possible, and to stiff their vendors as long as they can. Its the "ethics" of modern capitalism.

I have found that being a squeaky wheel is the best way to secure payment. I would advise against taking your customer to small claims court until you have reached the point where you don't want them as a customer anymore.

Most companies I have dealt with pay within 45-90 days. When you reach the 90 point, it is time to tell them that work will cease unless payment is received. The best person to tell this to is the person you are reporting to and let them work the accounts payable department. The accounts payable people are not connected to the mission, and since paying you goes against their goal of keeping cash as long as possible, they will continue to delay per the CFO edicts. The person for whom you are doing the work has a different goal, and will be more persuasive with the accounts people.

Good luck.