Collecting Receipts

[skinners1]

Shot a project about a month ago, and payment went as follows:

$150.00 non-refunable deposit (received via money order) should have thrown up a flag here huh?

1/2 of remaining balance was given the day of the shoot (received by check)

Final payment was to be given upon completion of work.

Was called the following day and asked not to cash check, (no funds available, their "financing" didn't come through)

Received a $200.00 check later and was told they would forward the rest as soon as possible. Still waiting on about $1450

I haven't done a thing with the raw footage, and don't intend to until i receive the rest of the "dough".

Guess I learned a lesson...

 

[Sirius_Doggy]

Yep, lesson learned. At least it sounds like you still have all of the original footage and haven't put any time into editing yet. Don't let em talk you out of the tapes until all the checks have cashed!

 

[Moonwind]

Yep, lesson learned. At least it sounds like you still have all of the original footage and haven't put any time into editing yet. Don't let em talk you out of the tapes until all the checks have cashed!

Yep, I agree. When hired to work on a low budget always have something to hold hostage until paid in full! :beer:

 

[craigbowman]

Hmmm..

Hmmm..

You should have a document they sign with terms and conditions, ie. contract.

1. Payments a.) Cash or b.) Certified Cheque or c.) Money Order is OK

2. All Progressive payments are same as above.

3. Always deliver the goods. If you ever have to take someone to court and the judge finds out you didn't deliver your end, then guess what, you will be found in breach of contract and they will acutally be entitled to all their money back.

4. Use standard business modelling for determining fees and charge where practical by the project rather than by the hour. This might seem goofy at first but it is structured that you figure your bare bones cost, add 10% and that is your 50% deposit. If its a short project, the balance is due upon delivery, (give them an invoice) and after thirty days 2% per month interest). If its a long project then 25% due at the mid point and then final 25% upon delivery.

The non-refundable deposit is used to cover your costs. The built in 10% on the deposit is your contingency as its always tough to get the real estimate right. The balance is your profit margin. This lets you grow your business. 25% of your margin is used to finance growth and the other 25% goes into your liquid capital fund. If you need additional money then you borrow against your own liquid capital fund. No bank will turn down money as collateral and it will instantly establish a credit rating. Of course you will only be able to borrow a percentage of your total liquid fund.

I have used this payment system for years and no serious project ever had a problem with a 50% deposit, be it government, compnay using purchase orders or what have you. If someone has issue with this, then its a great project filtering tool and you walk or run in the opposite direction.

Cheers