About 6 months ago I was approached by a big company managing projects for leading enterprises in Israel. Having done several medium projects for that company in the past, I was requested to step in and produce them a simple flash map.
Right after receiving a green light on that project, I began working on the map and quickly finished, sending that map to their project manager.
Time passed and after exchanging back and forth several emails for few months, the project got stuck at a stage I was waiting for a final answer that would finally clear out all the issues. Waiting for that answer forever, I decided to put an end to it and mailed the project manager requesting for a payment. This is where the fun begins.
The project manager explained me that usually they’re not paying the freelancer before getting a payment for the project. I kindly reminded him that the project is currently stuck and that this project which should have taken no more than a week got stretched over a period of 6 months. That was unacceptable for me and he said he’d discuss that with his CEO. Few days later I received the confirmation that I would be getting paid immediately.
I sent an invoice and 3 weeks later since I haven’t received any check I decided to contact their accountant. A very “kind” and cynical woman answered me and refused to give me any details on the status of my payment. Several minutes later, she finally began to “cooperate” and explained me that since my invoice was sent 3 weeks ago; they haven’t processed it yet. Their payment term were NET 60 (Counting 60 days from the end of the month the invoice was issued – since I issued it on the 15th, I was bound to wait 75 days!).
When asking her if someone else other than her could help me, she rudely replied me with a clear NO. I hanged up and went on writing a mail to that project manager explaining him how bad service that accountant is making to their company and that I’d like a quick intervention. (I am very good at writing complaints mail).
Today, I got a call from that guy, the accountant and he were looking for my invoice but they couldn’t find it (I suspect her to have intentionally lost it since the last time we talked she had it on file).
Now I have to fax them a copy of that invoice and another set of 5 different legal papers. It pretty sums up what I have been through to receive a tiny amount of money.
There are several things that are bothering me right now:
- The fact most Israelis enterprises contracting freelancers/smaller businesses pay on Net 60 term. If you wish to be the middle man and collect a premium fee on a work I am doing, I expect you to pay me when the project end and not to bother me with your client collection problems.
- Companies with complex bureaucracy system put in place in order to increase their cash flow over a period of time.
- Certain people having that much power in their hands.
In conclusion, I expect a company contracting me to treat me in the same way they’d treat a customer. You cannot expect from a contractor to meet its milestones if you cannot pay in time.
I am interested to hear about similar stories, if you’d like to share your own experience, please do so in the comments below.
Cartoon by amazing david horsey
I hear you man. If you think this only plagues large company, I strongly beg to differ. I’ve had two clients who just wouldn’t pay. They all had a large bag of excuses. “We’ve sent you the check, it should be there any moment now”, “There must have been something wrong with the money transfer”, “Please send us a few obscure forms signed by you and IRS because we require it” and “We didn’t get the forms. Did you send them? There must be something wrong with the mail”. There are amazing e-mail problems all of a sudden and sent versions seem to mysteriously get lost.
The only option is to request some of the payment in advance or at least checks for a later date, and to be prepared to tell no to clients and severe relationships if payments are not recieved.
Hey Amit,
I’m glad you’re reading my blog. Anyway I never stated this would happen in bigger company only, but you have to see the difference.
While your small customers were blatantly lying to you and trying to defer the payment using really bad techniques. Some of these big companies are doing the same without even knowing this is the case, sometimes it is a ridiculously bureaucracy mechanism that slow down payment, sometimes some idiot in the lower food chain that “take the law in his hands” and sometimes it’s just luck.
But end of the day, the outcome are the same either way.
Wow, Adam, I was very sorry to read this…A very unfortunate but all too common tale for freelancers in the Israeli landscape. I have had the pleasure of stumbling across an amusing new Israeli book on these painful subjects - check it out when you have time: http://www.am-oved.co.il/HTMLs/product.aspx?C1010=19170&BSP=13469
Ealz, thanks for the support. I am lucky that I can tunnel my energy toward a post rather than getting angry. Anyway today I have faxed them the papers they requested and called to check if they received it.
It seems they aren’t working past 4 PM
By the way ealz, I have read the summary of the book and I Really liked the subject.
People never mean what they says, so when someone tells me “To tell you the truth” in between his phrases, I always ask “did you lie to me until now?” and they usually stops and think about that.
Alas, there’s a broad range of phrases we as Israelis says without thinking about them. (Another one is “What’s up?” while the one asking that expect only one answer “Good, and you?)
Anyway thanks for the book, hope I’ll find some time to read it.
Adam,
Just read this now (after I looked at your new post).
For this reason, I divide the job into milestone payments, and I don’t continue with the job until I get paid.
It doesn’t help with the bureaucracy, which still drag decisions on a long time, but it helps out a bit with money.