Never looked into it, but I know they take a huge portion of it. It's like factoring accounts receivable, and they don't give you much on the dollar because they know you don't think you can collect anyway. Further, the dollars are relatively small compared to what other companies would send to collection agencies. We ain't GE Capital...
I didn't answer your previous questions because I am not interested in sending it to a collection agency because
a) the vast majority of transactions have worked very well, and we have cleared the air, to so speak, about future bookings.
b) The client used to work for a sister company in the property management conglomerate, and I am sure they talk. In fact, she was my client at the sister company before moving on to a new location (for one gig, which she also messed up as a client). A new manager is there, and she is fabulous.
c) In spite of being a bad client on this one gig at the new location, I have another 5 bookings with her. She has doubled my Christmas gigs.
c) She did the right thing and offered us an additional date.
New Development: She just emailed me AGAIN with another date for us. So, we lost one gig due to her inaction, but she replaced it with two more for us. I am happy now. Glad I played firm softball on this.
Love the trade credit terms idea -- need to think about that. I normally get paid before the gig, so offering trade credit with an early payment clause might actually slow down my cash flow, without giving a very measureable return, since the dollars are not huge overall. Unlike a manufacturing order of $50,000 where the cost savings to the buyer are likely significant to encourage action.
I didn't answer your previous questions because I am not interested in sending it to a collection agency because
a) the vast majority of transactions have worked very well, and we have cleared the air, to so speak, about future bookings.
b) The client used to work for a sister company in the property management conglomerate, and I am sure they talk. In fact, she was my client at the sister company before moving on to a new location (for one gig, which she also messed up as a client). A new manager is there, and she is fabulous.
c) In spite of being a bad client on this one gig at the new location, I have another 5 bookings with her. She has doubled my Christmas gigs.
c) She did the right thing and offered us an additional date.
New Development: She just emailed me AGAIN with another date for us. So, we lost one gig due to her inaction, but she replaced it with two more for us. I am happy now. Glad I played firm softball on this.
Love the trade credit terms idea -- need to think about that. I normally get paid before the gig, so offering trade credit with an early payment clause might actually slow down my cash flow, without giving a very measureable return, since the dollars are not huge overall. Unlike a manufacturing order of $50,000 where the cost savings to the buyer are likely significant to encourage action.