asking for an advance

[Stefan_Randlkofer]

are you guys asking for some part of your final bill up front before you start shooting? as it can be quite some time between me delivering my work and me getting paid, i wonder whether i should ask for that. how much % would be appropriate?
stefan

[Waleed_Alzuhair]

Hello Stefan,

The cycle of finance departments take 1 week as the fastest I've encountered, most companies request 30 days credit. Urgent projects are only requested by reputable and returning customers, those have earned their credit.

In my case, it all depends on the amount of time and effort spent on a project.. Some are too short for an advanced payment, such as exterior shots of buildings: We'd like 2 shots of the building. One bill is sent with the deliverables and they sign for all.

In most projects I require 50% down payment with the contract award, and the project is scheduled after 1st payment is received. 25% is billed half-way through the project, and the remaining 25% is at delivery.

Edit: Just visited your website, you have excellent work that speaks for itself.. Requesting advanced payment should not be hard with such a portfolio..

Best of luck

[John_Luke]

First time clients:50% advance to book the shoot. (I call it a retainer, IE non-refundable.) Balance COD.


Established clients: Full amount/30 days.

[Leslie_BurnsDellAcqua]

There are two general "standard" advance options: 50% of the entire estimate OR 100% of the production charges (what some of you call "expenses"). Either is accepted by most advertising and corportate clients.

When asked, just say that it is your company's policy to receive advances to hold the time, etc.

Also, once you have a good working relationship with a client, and you determine that they pay quickly enough, etc., it is perfectly fine to drop the advance requirement if you so choose.


For editorial work, advances are very rare, but then again there is usually less time available to make the arrangements.

Best--
Leslie

Your work is better than nearly everyone else's on this forum. Why are you asking such an basic question?

I want to tell you that payment and cash flow was my business's biggest problem until I started taking credit cards. Dell, Inc., Freescale Semiconductor and Motorola have all been paying our invoices (some as large as $30K) with corporate credit cards. I don't care about the 2.5%. I can modify pricing but it's worth more to me to get paid in three days rather than waiting sixty or more days. Did an annual report in January for an ad agency in another state and insisted that they make a "1/2 down, 1/2 on delivery" with credit cards and they never blinked. I just tell them that's the way my CFO set up the business. If they want to use me they can usually find a way to play by my rules. (never tell them you also happen to be the CFO and janitor......).

My two cents worth (minus 2.54%)

Kirk

[marc_gerritsen]

I am so bad with the money side, I still have about 2 months worth of bills outstanding, I trust all my clients a lot and so far knock on wood no one has skipped town without paying, I actually wouldn't dare ask for money upfront, somehow find it a bit rude like in restaurants where you have to pay before eating. I like to tread my clients well and tell them their happiness is mine. If they don't like my work, they just don't have to pay and guess what, with that attitude, no one has taken me up on that offer. But than again I am not in the $30k a job league (yet!)
Marc