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Advice appreciated on being paid late monthly!

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Anonymous

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Advice appreciated on being paid late monthly!

I've been an executive consultant for this company for a few years, i helped launch it and do staff training but have cut back my hours since the NY due to consistently poor and negligent upper management, which is also why they've lost employees recently. Currently it's only me working for them p/t, and another p/t consultant just hired, but effectively i'm holding the business together & on my way out with a very loose exit strategy. Since the new "CFO" started last july, I've been paid late and had to chase down my invoice payments, every month. I always invoice at the end of a month worked, and had always been paid within a few days of receipt. They've also not paid clients and suppliers due to negligence from the CFO, for almost a full fiscal year, and i feel responsible to work with the new finance people to get the clients paid, which i've been doing and we're almost up to date on. I plan to leave entirely but I told them i'll consult on an as needed basis moving forward, my best case scenario is to keep some p/t income from them until i can land something stable, but I am starting to take the monthly overdue payments as a personal affront and they undermine my confidence and ability to show up and work for them at all. Aside from being unprofessional, it feels like intentional harassment from the CFO, who also does not respond to any communication. I've raised these & other issues with the upper management, who tend to assign blame to others or defend the CFO. I still put everything in writing and address situations with professionalism, so looking for advice on how to best approach upper management to say this is creating a lack of confidence and feel like harassment & i need to be paid on time.

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  1. Anonymous

    I've started consulting again and this may not be helpful since yours is an ongoing relationship. But, I have a late fee if not paid on time, and a weekly sliding scale for every week they're late (used to be monthly). I hate it and hate having to enforce it more but I need the protection. I've also turned down work and let some clients go if their payment terms don't fit my needs and what's generally seen as reasonable. A couple of months ago I let a client go whose terms were at 120 days. And this was optimistic, it was a fight every single time. For some clients with past payment issues or unknown entities, I also require a 50% deposit if I want to take the work. Who knows, right now I'm in a feast era, I may change everything during a famine phase. I think giving them consequences feels necessary at this time.

  2. Anonymous

    Thanks, that is def. something i will incorporate to future contracts. I like the idea of a deposit or upfront payment as well. Much appreciated!

  3. Anonymous

    Thanks, i'm not concerned about being terminated, they don't have anyone else running the company, but my intention is to leave, just trying to get clients paid first.

    The consistency for 3+ years was payment within a few days of receipt. My invoice states due within 7 days, new CFO has paid late by 2-3 weeks, monthly, for nearly a year.

    fyi, my contract technically expired at the end of 2021, i was in process of addendum to extend, but gave them formal notice of resignation a few months ago and said i'll only consult on as needed basis.

    Any advice on how to raise the issue as problematic and a reason for my leaving with the upper mgt?

  4. Anne Krook

    Definitely look at your contract terms. In your shoes I would avoid using the phrase "feels like harassment" in your communication with the company (of course I totally understand that it does feel that way) because that phrase potentially opens up a whole nother can of worms. Just focus on the actual mechanics of getting paid on the terms stated in your contract and, if you haven't already started, work on finding your next good job.

  5. Anonymous

    Thank you!

  6. Anonymous

    Please be selfish and focus on your own billing and payment issues. Not your problem to fix their dysfunctional AP system or get other vendors paid. You’re going to take attention away from the issue at hand: timely payment of your invoices.

    I agree with another poster: harassment isn’t the right terminology here. You’re going to dilute your argument because so many people associate that with unwanted sexual attention. You’ll sound like you’re picking a fight so remain focused on the goal.

    The confidence issue: the organization doesn’t care and this argument holds zero weight in my opinion. You’ll look vulnerable and fragile. Your trigger, your responsibility. This is a billing and payment issue not an attack on your professional persona.

    I get the sense you’re trying to attach some buzz words to this issue in hopes of getting someone’s attention. I’m not sure this strategy will be totally effective. Remain factual, cite your contract terms and follow up aggressively for payment updates until the money is in your account. Best of luck.

  7. Anonymous

    Thanks, i appreciate your insight. I might be using 'buzz words' from a point of frustration, but agree it is best to stick to the facts. I must admit it is difficult to maintain objective composure when looking at the rot too long.

  8. Anonymous

    If they can't pay you on time then you stop work until you get paid or fire the client. It's not worth the aggravation from this client when you could be putting your energy into another client that respects you and pays on time. You don't work for free.

  9. Anonymous

    Thank you!

  10. Anonymous

    Hello, fellow consultant and freelancer here. When you invoice, do you include payment terms, such as 'due within 10 business days,' or similar? Absolutely do that on every invoice you send out, to this client or future clients. Then, if they miss the deadline, send them another one with interest accruing. That will get their attention fully. You are a working for money. You are a business. Don't take it personally. Take it like a business.

    Here is a resource that outlines things where I live. I'm sure you can find similar guidance for wherever you are: https://www.freelanceuk.com/running_business/how-charge-late-payment.shtml

  11. Anonymous

    Hi & thanks for your reply, yes i do state payment terms on invoices. I appreciate the link too!

  12. Anonymous

    You aren’t being paid on a timely manner, end of story. Upper management wouldn’t tolerate getting their pay checks late. Why should you? Let the person who you report to know that you need to be paid on time or you need to part ways. Approach this in a factual way. For the past six months I’ve been paid (state how long) late and I’ve needed to follow up multiple times. I enjoy working with your company and would like to continue. To do so I need to be paid within a week of invoicing. If this isn’t feasible, I’d like to create a retainer or deposit on future work. No blame. No finger pointing. And if they try to pass the buck don’t accept it.

    This isn’t personal. The CFO is likely choosing which bills to pay first, like restaurants pay the food suppliers first. I work for a magazine and we pay the printer and postage before any other suppliers get paid. It is a business decision and not personal. You aren’t a bill they need to pay or else’s they’d be out of business. And they might think that you will work for them anyway.

    While you might want to leave things wrapped up in a nice little bow, you don’t owe this to them. As far as wanting suppliers to be paid, that’s admirable and also out of your control.

    If you are going to take being paid late personally and let it sap your confidence, as others are also being paid late, perhaps this isn’t the job for you.

  13. Anonymous

    Thanks for your reply, good advice to stick to the facts and set boundaries. I appreciate your taking the time.

  14. Anonymous

    It's time to reconsider where you are working because their behavior would suggest they have cash flow problems. Talking to them and trying to dissect why or who to blame is likely not going to help if this is an endemic problem. You surely would not want to find out that you worked for them and then never get paid. Get out before that happens.

  15. Anonymous

    Thanks, i agree and appreciate your advice.

  16. Kia Harris

    Agreed! Adjust your bill due dates where possible and always keep a reserve of possible to limit negative affects until new business is secured! Good luck

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