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One has to wonder if it would hurt their credit ratings to not pay their bills to musicians.
by MiddleEndian 7y ago
One has to wonder if it would hurt their credit ratings to not pay their bills to musicians.
- godzillabrennus 7y agoCompanies always pay when it hurts them not to. When running a service business the best decision I made was using a factoring service from Welles Fargo. Big company might specify NET180 on a big contract and still not have remitted payment 200 days in. If you are a small company your recourse is to sue. If you have a big bank handling accounts receivable they call on day 181 and tell the company that their credit rating is taking a hit for not making payment on time. Payment gets made. Big companies like good credit ratings, they don’t like paying more to borrow money. Seems like there is a market opportunity for artists to have a financial partner handle collections on their behalf.