We are at the end game in terms of negotiating an international client. All other international work to date has come through existing clients (word of mouth) so if we are successful in getting this client, it will be a first in terms of an unknown source. The project is sizeable and ongoing so I want to make sure we get the terms right.

I just need some advice re: credit terms, rates and payment with international clients from an unknown or trusted source. What do the rest of you do? Do you:

* ask for a deposit upfront and if so, what percentage of the total?
* do you bill for the work as you do it or offer credit terms (bearing in mind you have no history with this new client)?
* do you offer a rate comparative to their own region or do you stick with your normal rates (just thinking of competitiveness)?
* do you only accept PayPal or other credit card payment or do you use international transfers etc? (we have only ever used PayPal in the past with our international clients).

Thanks for your help in advance. Any other information of relevance would be much appreciated.

equipbiz

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Congrats on another contract! That's wonderful

-I *always* take a substantial deposit (at least $XXX) from new clients - it's held against six months of regularly paid invoices.

-I only ever offer 'credit terms' on large projects such as websites or software design that would be invoiced as a whole (rather than every two weeks like everything else) and only for invoices totalling over $X,000. I offer 3% for 3 months, 6% for six.

-Rates are rates, regardless of where your client is - that's just my opinion. It would seem unprofessional to me if someone wanted to charge me more based on where I'm located - of course if they wanted to charge me less based on the same criteria I'd be pleasantly surprised - but there's no real logic for that, I think.

-I also only accept Paypal. I did used to accept direct deposit and the random check but that just got to be a nightmare.

In short, I don't think it makes much difference where your client is located - whatever your business policies and general way of doing things are should apply all the way around, if for no other reason than to streamline your own business practices and make things easier for you as a business owner.
If I start making additional 'sets' of operating procedures and rates it really only makes more work for me, which I have enough of already

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Thanks Tess, that all makes perfect sense to me and I would agree with you.

My main concern about being competitive lies in the horrendous exchange rate situation between the dollar and euro ... it makes shopping in the US cheap (for us) but getting paid in dollars not so lucrative! I would want to charge the same rate I do for all my clients but with the exchange rate it may turn out to be a little 'rich' for my client. Who knows how it will turn out! It remains to be seen really although as I said before I am at the end game in terms of negotiations so fingers crossed.

Thanks for the advice, very much appreciated.

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I see - you do have a point about exchange rate there...particularly since you're outside the U.S. - I wasn't thinking in that direction

What about posting a thread specifically about how others handle the exchange rate from outside the States when billing American clients? That might help get you more perspective.

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Good idea ... will do - presumably under the same section Rates, Invoicing and Billable Hours. Off now to do that!

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