I am gradually entering the video production business with a colleague and
we have run into a situation that I am hoping someone could help with. My
question is how does one set up a payment schedule for a company or institution
that disburses payments on a 30 or 60 day net schedule. All the research
I have done so far says to clearly specify a payment schedule with the final
payment from the client due upon receipt of the final video. Some people
even advise to withhold the final product until the last payment is in actually
hand. This seems like it would work OK for smaller companies.
The problem we recently ran into involved a gig for a public school.
My partner set up the gig so I wasn't in on the contract negotiation.
However, the school makes payments to contractors through the main district office
which is on a 30-day net schedule. The gig was a rush job with a two week
turnaround. So this ended up with us
doing the entire gig, beginning to final delivery without getting paid
yet. Im not worried about not getting
paid, our money is working its way through the system and is expected just after the new year. I just wonder if this is par for the
course? What useful advice is there for
dealing with large bureaucracies where payments may be delayedespecially when
a project is on a tight schedule.
Thanks for your advice.