I am in a tough spot and could use some advice.
I own a small business - web design - and everything has been going very well. One exception:
We have a client that is responsible for a good chunk of yearly revenue - over $150k. I like working for them and it is obviously good money. The problem is that they NEVER pay on time. They are a well-known company, most of you would probably know of them, so I know they have the funds. They are just habitually late with payments.
We are on a retainer with them and we invoice them once a month. Our invoice specifically notes a net of 15 days, yet it takes them over 90 days sometimes. I have 4 employees and I like to pay them well. The problem is that without the income, it is hard to plan ahead. We are fine on money, but if they decide not to pay for 90 days, that is a large amount that we are not bringing in the door. It just scares me - I am OCD with the books.
Anyway, we have no AP person at the company, I deal directly with the VP of marketing. I invoice him directly. So, it is kind of difficult to be a hard liner with the guy whose business you want to keep.
I have mentioned it to him multiple times, and he seems to understand, but he gets better for a month or two and them goes back to his old ways.
I asked for an AP person and he said all marketing costs go through him so he has to get the invoice. Maddening.
Has anyone dealt with this before? Any ideas, tricks or advice on how to get through to them?
Thanks.