Chasing Payments: Long Overdue

Chasing payments can be a major source of frustration for creators. In fact, many creators experience late payments, often due to internal issues within the client’s organization, such as miscommunication between those approving and those processing payments. Waiting for payments isn't just a headache—it can be time consuming and affect your ability to manage your money/finances

So what should you do to ensure you’re paid on time?

Stipulate Rigid Payment Terms:

Don’t offer 120-day payment terms just to win a new client. This can lead to financial strain down the line. At Bread, we recommend 30-day payment terms. While shorter terms like 7 days are preferable, many larger clients have monthly payment cycles, so we aim for a practical middle ground.

Charge Interest:

Include interest on any overdue payments, typically a few percentage points above the base rate. At Bread, we charge on all invoices outstanding beyond their payment terms. This incentivizes timely payments and often results in early payments.

Credit Control:

Chasing your own payments is a form of credit control. However, there are numerous companies that offer payment-chasing services, from automated email chasers to debt collectors (the latter of which we don't recommend). These services can relieve the stress of manually chasing payments. At Bread, we combine automated email reminders with direct calls once a payment becomes overdue.

Identify Stakeholders:

Having a great relationship with the brand manager is important, but they are rarely the one making the payment. Payments are usually processed by someone in the Accounts team, instructed by the Brand Manager. To avoid delays, ensure you have the contact information of the person responsible for making payments.

Credit Insurance:

What if your client never pays? This is a significant issue for creators. The solution is credit insurance, which allows you to collect payment from your insurer if your client defaults. However, insuring single invoices can be costly. At Bread, we group all our creators' invoices together, spreading the cost evenly and automatically applying insurance to every invoice processed through our system.

Bread’s Solution:

The good news is, Bread does all the above for you. We provide a one-stop-shop to ensure you get paid by your client, and more importantly, we pay you the day after you complete your work. With Bread, you get the peace of mind of secure invoices and zero hassle with chasing payments, all while getting paid the next day.

Conclusion:

Managing payments can be  stressful & boring. But by following these tips it should make your life easier. Alternatively, use Bread’s comprehensive payment solution, this way creators can focus more on their craft and less on financial worries. Use Bread, and enjoy prompt, hassle-free payments so you can focus on Creating

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