 |
| [bird in hand*] |
Translation being an Internet-based service, I have experienced, for
better or worse, a wide range of payment arrangements. They generally differ in
terms of time, with these variances usually depending on the type of customer
and payment infrastructure. I can say for certain that payment terms for
translation services are not a “one size fits all” category with the major
distinction being individual companies as compared to translation companies and
other corporations, private and public. The range of conditions include:
Private customers:
Full prepayment – Generally demanded from first-time customers
regarding which there is some doubt or used for customers in countries where
that method is socially acceptable. I personally find it less comfortable as prepayment somehow puts extra pressure on me but that is a matter of personal approach.
Partial advance payment with the rest upon delivery: This option is
ideal for larger projects, reducing the risk to the translator or editor, as
well as a compromise in terms of showing how much trust there is in the
ordering party. This arrangement is similar to how house renovation is handled:
the payee makes an initial partial payment and waits to see the final result
before complete payment, which should be made promptly after delivery.
Full payment immediately upon delivery: In my experience, this is the most
common manner with individual customers. “Immediately” may involve a few days
but not more. This method is very natural for customers as they are used to
paying for products at stores upon receipt and the most agreeable for
translators and other freelancers in terms of cash flow. It prevents the
feeling of becoming an unwilling credit agency.
Monthly invoice: For private customers with regular work, such as law
firms in my case, it is often more convenient for both the translator and payer
to receive a monthly invoice, which is to be paid promptly.
Invoice plus 30 days: This is the least ideal method for private
customers. Not only do payers tend to forget to pay, which then leads to more
time investment due to the correspondence, but translators often forget that they are owed money and
discover three months later that they still have not received payment.
Freelancers should avoid this term of payment unless there is some compelling
reason otherwise.
Translation agencies, corporations and public agencies
The playing field changes here. These large bodies have far more
bargaining power than freelancers as well as less flexibility than private
customers. Thus, in general, they set the terms, which translators can either
accept or refuse.
Immediate handling of invoice: This is best of all possible worlds for freelancers.
The receiving company is sufficiently streamlined to direct the invoice to the
relevant department, which issues payment within one and no more than two
weeks. Translators, bless such customers.
Invoice date plus 30 – This is much more common and still reasonable. In
practice, the institution allows itself a full month to make the payment. It
also guarantees that the translators will not have a long wait before receiving
compensation for their work.
EOM (end of the month): This method is
also standard and requires all service providers to submit their invoices by a
certain date, generally a few days before or after the last day of the month.
The company then issues payments within 1-2 weeks. In practice, it means
anywhere from 10-45 days from completion of work, depending on the actually
date of completion. Freelancers have to keep records and pay attention to the
last date of submission for a month. Otherwise, they can find themselves
waiting an additional 30 days.
EOM plus 30: Unfortunately, this policy is quite common. It is
identical to the previous one but with one critical difference: the company
pays the invoice at the beginning of the month following the month of
submission. Thus, the payment delay often reaches 45 days and more.
EOM plus 45 or 60: This is approaching the extreme end of the scale. Translators
that work under such terms should take the delay into account and add a
“credit” charge to the fee, albeit a hidden one, to compensate for the delay in
payment. Accept at your own risk.
Invoice date plus 90: Contracts with public agencies and institutions may
be rather large but often involve quite complex payment approval procedures, or
at least so these bodies claim. It is not unusual to have such bodies take 90 days or more to approve and execute your
payment. Translators and other service providers need to take that into account
in terms of cash flow and rates. Clearly, these bodies set the terms. The
freelancer can either accept or avoid them. Consider carefully.
In practice, I have worked with all these conditions, including the last
one. There is no single “ideal” payment term. Each customer situation has its
own elements. Clearly, the faster the payment, the better but, on the other
hand, a customer in the hand is income even after 45 days. For translators, the
time of payment can be as important as the actual amount.
* Picture credits help the blind full access the Internet.
No comments:
Post a Comment