How do I ensure payment for services rendered.

When working with a major production company or even indie film producers how do you make sure you get paid for services rendered or location rental? Do you require a letter of credit (for major producers) or maybe a credit card on file for smaller accounts? Do you get paid when services are performed or is there a billing cycle that you have to use? Is all of this negotiated when you are securing the contract (I assume contracts are needed to cover everyone's butt)? I have never operated a business where I needed a billing service or CPA to collect my fees but I need this information in order to get my business plan in order.
 
When working with a major production company or even indie film producers how do you make sure you get paid for services rendered or location rental? Do you require a letter of credit (for major producers) or maybe a credit card on file for smaller accounts? Do you get paid when services are performed or is there a billing cycle that you have to use? Is all of this negotiated when you are securing the contract (I assume contracts are needed to cover everyone's butt)? I have never operated a business where I needed a billing service or CPA to collect my fees but I need this information in order to get my business plan in order.

It does depend on who/what you're working with, but most of the time, you

a). do the work.
b). send them an invoice
c). 7/14/30/60/90 days later, accept payment or chase up payment
d). if payment doesn't come, send to a debt collector

Some people negotiate payment up front or partial payment and so on. It all depends. When you're dealing with corporate accounts, it can be payment due 90+ days from date of invoice, which usually ends up being 120+ days.

It's all part of the negotiating.

If you're talking about working as an employee in the business, payment is usually made at the end of the work week. This is often true too as a contractor, but you'll usually need to supply an invoice.
 
My services will consist mostly of locating filming sites, arranging logistics and contract labor (set building, lighting, sound, etc.) Since all things are negotiable I guess I can put how I want to be paid in the contract. Thanks for the insight.
 
As I was saying earlier, it does also depend on who you're dealing with. If you're dealing with corporate, it's not as simple as "7 days from invoice". If those are the terms, most of your clients will look at your more expensive competition.

Negotiating isn't "I'll put what I want in the contract" it's an agreement that both parties can live with.

Good luck with your venture, it sounds interesting.
 
Thank you......I'll be doing a formal announcement as soon as I have everything set up.
I spoke to a lawyer that helped me sell some property recently and he is now on board as my contract guy.
 
Thank you......I'll be doing a formal announcement as soon as I have everything set up.
I spoke to a lawyer that helped me sell some property recently and he is now on board as my contract guy.

The contract you'd need to be a location scout is a Deal Memo. That's signed before the shoots. An Invoice is sent after the shoots.

You said you've spoke to a lawyer that helped you sell some property? He's on board? He doesn't sound like an Entertainment or Film Lawyer.

Don't get a lawyer who simply paid their 200$ fee to practice in Entertainment, find someone who actually does that as their primary practice.
 
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