11.08.10
How to get paid as a Professional Photographer
They say patience is a virtue, but when the bills are piling up and you still haven’t been paid from the job you landed three months ago, what do you do?
The bad news is there are no set ground rules, but the ball is in your court and you can take control. It is your responsibility and obligation to ensure you are paid for each commission but being self-employed and getting paid don’t always go hand in hand. The fact of the matter is that some jobs will never get paid.
To cover their outgoings in these circumstances many freelancers will have a savings account as a back-up plan. Even when the money is flowing in from jobs, don’t ever take this for granted.
Next month is never far away and you are likely to have the same bills to pay, so be prepared and allocate enough money for a limited period while taking the rough with the smooth and more jobs come through.
• Double-check the invoice and ensure all details are correct and you have quoted all the information required for payment such as customer reference, bank details etc.
• Contact the client via telephone to confirm the invoice was received. Ask when and how the payment will be made. Follow up this conversation with a re-issue of the invoice through email or recorded letter if required.Wait for seven days.
• If there is still no reply or payment start to call the office regularly in a polite, calm and professional manner. Follow up each conversation with an email and make it personal by reinforcing previous conversations and commitments made by the client. Keep a record of all correspondence in case it is required at a later stage.
• If the client is not responding to your emails or telephone calls, can you take it any higher within the company? Continue to call at different times of the day. Note that Monday morning is usually a good time to call but try to avoid lunch hour.
• Go to the office. Most clients may try to avoid confrontation but do not be afraid to stand your ground. If a cheque is given, double-check the amount, date, signature and bank as soon as possible to ensure that the payment is not cancelled subsequently.
• If all your efforts have failed it may be time to take the matter further. When the work has been received and completed satisfactorily the client is no longer a client but a debtor. If you are a member of a union it can help to mediate in disputes and offer advice on how to compile a letter to inform the client you will be takingthe matter further.
• Often an official letter will provide the nudge and reality check required to cough up and pay the overdue balance, although sadly in other cases you are left no option but to proceed with a county court judgment (CCJ).
• If you wish to take your claim to the Small Claims Court you need to start by filling out the form and reading the information provided by the local courts. This can be found at www.hmcourts-service.gov.uk
• To proceed with your claim online visit www.moneyclaim.gov.uk
Top tips to be prepared
1. Get web savvy: ‘Check out’ potential clients on the internet through search engines. If your client is a limited company visit www.companieshouse.gov.uk.for an overview of the financial status. If you require a credit report visit www.ukdata.com, although these are never usually free.
2. Get organised: The key for successful business management is to ensure you have a bomb-proof system to allocate when invoices have been raised, how much for, when the payment is expected, the overdue date and a recording of the process of following up the invoice. This is standard procedure and will ensure, if required, that you can be consistent and concise in chasing payments. It may be worth looking into a business management software such as Light Blue: Photo. www.lightbluesoftware.com
3. Get a contract: A legally binding contract is a must for every freelancer and is the most crucial aspect in the whole process of getting paid. Beyond the Lens (Chapter Two Contract Law, Privacy and other Important Legislation), by Gwen Thomas, is available as an email version from £5, www.beyond-the-lens.com. Ensure the client signs the contract and each party receives a copy. If the client doesn’t want to sign a contract, that is a warning sign.
4. Get a deposit: Ask for a 15% deposit as a commitment to the job but don’t forget to take this amount off the invoice. It may be worth offering 5% of the deposit on return as a goodwill gesture for payment on time. However, never ask for this from an editorial client as it would be inappropriate.
5. Put into place a payment schedule: Break down the payment into scheduled dates. If a client falls behind on payments the photographer then has the option of refusing to continue the work until payment is received. A client will not want to fall behind in payments if the work depends on meeting a deadline.
Gwen Thomas, executive director of Legal & Business Affairs at the Association of Photographers (AoP), offers her words of wisdom from a legal perspective.
Q. What is the recommended amount of time for an invoice to be processed and received successfully?
A. In an ideal world 30 days but it tends to be more like 60 to 90 before payment is received (sometimes it’s 120).
Q. If a photographer has a difficult client avoiding or refusing payment, what would be the correct procedure to follow?
A. Chase up by phone and letter – www.payontime.co.uk is a good website for letters. By law, photographers can also claim late payment interest and the site includes a ready-reckoner to work out how much is owed.
Q. What are photographers’ rights in this situation?
A. Apart from charging interest, if they have used terms and conditions at the estimate stage, one of which would say that the licence doesn’t come into force until payment is received, photographers can stop the client using the work until they have been paid.
Q. What support does the AoP offer its members?
A. Email or phone advice and letter writing if necessary, together with access to a subsidised lawyer’s advice and letters if the amount is too large to deal with. Sometimes one letter from a law firm will make a client pay up because they realise the photographer is serious.
Q. What actions would you advise photographers to take to avoid these situations recurring?
A.There aren’t any; if clients will not or cannot pay then there is no action photographers can take to avoid non-payment. If it is a large job and/or overseas then many (particularly advertising photographers) will ask for 50% to 100%of expenses upfront.
Q. Is a county court judgment (CCJ) a good option?
A. Court should be the last resort and photographers must have tried all other options first. Judges like to see that applicants have tried everything before taking out a summons.
Q. How much does it cost to take legal action and can you receive legal aid?
A. County court costs depend on the size of the debt and lawyers shouldn’t be needed. If it goes to high court because the amount is larger than a county court will deal with, then it would depend on the circumstances of the photographer as to whether they could get any help.
Q. Is it okay to tell other photographers about a non-paying client on a blog or forum?
A. Care needs to be taken when mentioning any individual’s name on blogs or forums.
Q. Any other advice you would like to offer?
A. Ensure all paperwork is tight, use terms and conditions and ensure the client has access to these before the job is shot, otherwise they don’t form part of the contract.
For full information on becoming a member of the AoP visit www.the-aop.org
...Dont
• Lose your temper, Violence and verbal abuse are not the answer.
• Take it personally, It is very likely you are not the first or the last who won’t get paid.
• Be negative, Posting critical comments about clients on blogs or forums could undermine your professionalism.
• Be too nice, When a payment is long overdue, consider calling in the big boys and hiring a debt collection agency.
• Get ripped off, Shop around among external agencies for the best percentage rate for your work. This can vary from as little as 5% to 45%.
• Think you are alone, Join an organisation such as the Association of Photographers (AoP) or British Institute of Professional Photography (BIPP) for advice, support and guidance.
• Be hesitant, If you say you are going to take action make sure to follow it through. Let others be warned you mean business.
• Work for a difficult or non-paying client again, Learn from your mistakes – at the end of the day some jobs are not worth the hassle.
• Pass the buck, It’s wrong to assume that someone else will deal with a query on your behalf. Cut out the middle man and if possible get in touch with the accounts department directly.
• Be afraid to be direct, The way in which you handle difficult situations reflects on you as a photographer and an individual.
• Become a pest, Harassment is not the answer.
www.smallbusiness.co.uk
www.direct.gov.uk
www.allfreelancework.com
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