Sometimes I feel like I’m dealing with a bunch of wimps.
Wimps who cave in without a fight and who compromise their integrity for money.
Last week I wrote about a recent European Directive to combat late-paying clients. New, stringent rules have changed the game in favor of small and mid-size companies. No longer are we at the mercy of businesses and government institutions that made us wait forever to get our money.
Now, any Europe-based entrepreneur can charge interest if a bill isn’t paid on time (usually within 30 days), and add at least €40 (about 54 USD) to cover the cost of debt collection, should it come to that. There’s no legal obligation to send a late-paying client a reminder. It is expected that an invoice gets paid when it is due.
If this were to happen in the U.S. where I live and work, I would jump for joy. Every year, thousands of businesses go bankrupt. Not because their product or service stinks, but because they’re waiting to get paid. This new Euro-legislation aims to make that a thing of the past. Isn’t that a cause for celebration?
Some colleagues greeted the new rules with fear, disbelief and skepticism. One freelancer wrote to me:
“Those regulations are nice in theory, but I wouldn’t dare go after one of my biggest clients. It usually takes them 100+ days to pay me and I hate that. So, why do I put up with it? Because if I were to get tough on them, they’d hire someone else in a heartbeat.”
I asked him: