If I have a client from other continent, how can i make sure that I will be paid? Do i have to let the client sign a contract when I am here in the Philippines and he is somewhere else? Do I have to ask him for a downpayment? I just like to be educated on this so that i won't be a victim someday because I heard that there are VA's who don't get paid by their clients. All of my previous client were from abroad we don't have any contracts I just trust them and they really are kind and honest, but in business this is always not the case right? So please i need your inputs on this. Thanks.

Hi Fast finger, I make ALL my clients sign an agreement. Depending on how they came to find me depends if I ask for them to pay upfront or upon delivery. I've never had a problem with non payers from another country only those local to my country.

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Kylie Short
Tilda Virtual Services - Making virtual personal

I agree with Kylie on all counts.
We take a deposit from all new clients as well - it's returned to them against X months of regularly paid invoices and so far has been a great failsafe.
We also have and implement a late payment policy.

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I would say always get the payment in advance if possible. I learned from this forum that even hourly clients should be required to pay a deposit new or otherwise. For one off projects or things that I charge flat fee for, 1/2 is due before work begins, the other 1/2 is due when the final piece is delivered. Files are not released until I receive the full amount.

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Tamika R. Johnson, MBA, Principal
administrative partners, llc
www.administrativepartners.net | http://adminpartners.blogspot.com

Here's the bad news, guys...

You can put all the legalese you like in your contracts and be super strict, but there will still be deadbeat clients that refuse to pay.

A 50% up front is a necessity - but chargebacks and stop payments can still occur and there's little you can do about it unless you have the funds to take them to court.

Charge enough to weed out the deadbeats and it won't happen as often.

If I were working with foreign clients, honestly I would require wired payment of 50% - something that couldn't be charged back or stopped and I would then refuse to turn over the final product until full payment had been submitted and cleared.

You're just too vulnerable and it's hard to judge the character of a new client when you're virtual. Just my $0.02

For one-time projects, I ask for 50% pre-payment and the other half to be paid upon completion of the project.

For hourly rates I ask for 50% of the estimated total hours for the week. Every week thereafter, I bill them at the end of each week.

50% up front is absolute. That way you can at least feel them out too. Make sure that they hold up to their end as you do!

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Kristina ~Success Office Solutions
Our Solutions Equal Your Success!

Take advance payment! I am so scared of even venturing overseas because of this same concern!

Have any of you that require advance payment received any push back (or hesitation) from the client?

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Sheree Wilkerson

I have not received a problem requiring advanced payment upfront...I require full payment in advance now. But what I have found to be a problem lately are those who want to terminate the contract at the moment due to not having the funds and I have to remind them that I have a 30-day clause for terminating for whatever reason.

I also try to work with them on other payment options and I have waived my minimum to salvage the account but I have found in these cases, they simply don't have the income to support administrative assistance.

The best thing to do is to terminate on good terms for future referrals from these clients.

Janine

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A clear and detailed contract would give you a legal recourse in the event of nonpayment, And a WELL-WORDED contract would assure both you and the client are on the same page. Just make sure you get everything into writing. In addition, since you are being paid from overseas, it’s important to note who will absorb transaction fees). Signing the schedule will help the client remember to make their payments and be a final checkpoint in the case of miscommunication.

For hourly clients, how do we estimate a deposit? If the project is for 4 hours per week, do we ask for half of the weekly amount up front as a deposit?

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Nekiwa Smith, Optimal Admin Services
http://optimal-admin.com

Great thread. I unfortunately have already had the misfortune of having a client refusing to pay the agreed fee so from now on I will be charging 50% of the fee upfront. I went into the agreement in good faith, foolishly expecting the same from the client but as mentioned some people have no scruples which makes us have to change our own business policy to protect ourselves, our time and our work.

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Sabrina L. Williams
Administrative Consultant for your Business Needs

A deposit and a signed contract are essential before you start work. Along with covering yourself to some degree, your insistence on this procedure shows the client that you're a professional business person.

As an example, I recently acquired a new retainer client, a small law firm some 500 miles away. After the initial contact they wanted to start sending me work right away ... . As, for the number of lawyers in the firm, in my view they're overstaffed this was a bit of a red flag. I emailed them a client profile questionnaire and a contract for signature. Two days later I received the signed contract and "where/how would you like us to send you the first month's $".

Although a signed contract must be had, it's really not that much of a safeguard as, if the client turns out to be a deadbeat, trying to enforce it will cost you far more than you're owed. The $ up front is the essential.

Although I have a PayPal account, I detest it and only use it to make contributions to charity. I had some concerns with regard to security but, after speaking with my bank manager, I use direct deposit to my business account (no extra charge from my bank). If it continues to work well then I'm avoiding PayPal fees and the headaches of chargebacks and disputes. Over time I've also heard that PayPal can freeze your account on a whim and it's a nightmare trying to get it released.

Lynne

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www.wordprowizard.com

P.S. Over the years I've only been burned once. I incorporated a company for an ex-boyfriend of a friend in another province. He paid the out of pocket expenses up front then disappeared with a horde of bill collectors on his heels so I was only out my time.

On another occasion I withheld corporate minute books until I received a certified cheque (almost $1000) and there was one that refused to pay I took to Small Claims Court. He met me on the courthouse steps with a cheque in full payment and I went straight to his bank and had it certified.

I'd certainly recommend doing your due diligence on a prospective client, researching and finding out as much as you can before you do the initial consult. If they're a publicly traded company you can check them out through the government websites as well (Sedar in Canada and I believe it's Edgar in the US).

Lynne

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