Working with a client who's not paid suppliers in the past

[TheFaQQer]

If it was me, I'd be asking for the payment up front for the first two days and weekly invoicing with 7 day terms for the 'few hours a month'.

Even seven days may be pushing it - payment on receipt wouldn't be unreasonable here.

[billybiro]

You feel like you'd be letting her down if you backed out now? Wait until she doesn't pay you. Maybe she screws suppliers over because they feel bad about letting her down rather than using common and business sense...

By golly, NLUK, you're a man of many faces.

Careful now, soon you'll be telling the OP to take the gig and get ready to bail on her client as soon as even the whiff of a rate increase blows by! In the name of common business sense and fiduciary duty, of course!

[Lewis]

Thanks.

Not an IPSE member, but have been looking at Standard membership. Had a quick look again, and can see IPSE+ would be better if I ran into problems with this client.

The project would start with me doing 2 full days of work, before settling into a few hours a month. As you suggest, weekly invoicing sounds more reasonable for those few hours, but bit concerned I'd do the 2 days work and not see the money.

Check the small print on IPSE insurance, I had a client go bust owing me many thousands and I was not covered; can't remember specifics off the top of my head. Same situation, it was a company that had risen from the ashes a few times following insolvencies, so I was half expecting it.

[TheFaQQer]

Check the small print on IPSE insurance

Terms and conditions can be found here.

[redgiant]

Another way that I was investigating with a poorly paying client earlier this year was to be a card merchant and to charge the clientco's corporate credit card following an approved timesheet & expenses. That way you would be paid that day or the following day depending on when the transaction is made. This is common in certain industries (namely in the creative sector) at least here in the US to pay suppliers and contractors this way. Be aware that card companies will charge a merchant fee (2-3%) for each transaction which I would have included in the daily rate.

[Andy Hallett]

The amount of credit you should extend is the amount you're willing to lose.

Could probably close the thread after this point.

Shorter payment terms, upfront payment (% or full) or Escrow are your options.