Entry

Corporate Double Standards

I am truly tired of a corporate culture that believes in stringing along vendors for payments. I design for a prominent group in Karachi, and in the six months of my agreement with them, getting payment for my and third-party services has been like pulling teeth.
This is the scenario: I get calls every day pressuring [...]

I am truly tired of a corporate culture that believes in stringing along vendors for payments. I design for a prominent group in Karachi, and in the six months of my agreement with them, getting payment for my and third-party services has been like pulling teeth.

This is the scenario: I get calls every day pressuring me to deliver work to them because ‘their business is suffering from the delays’. My client expects me to meet deadlines and provide quality work at the same time. That’s my side of the deal. In return, they pay reasonably well, and the agreement stipulates that payment be received within 10 days of issuing the invoice. It normally takes them anywhere from 30 to 45 days to release my payments. That’s my client keeping up their side of the bargain.

I would probably have no issues with this, but when the delays go beyond 45 days and turn into 60 days, it starts affecting my business - obviously not my client’s problem. What really irks me about this is that asking for payment seems to make me “unprofessional…” I blew my cool at one point, after 60 days of constant reminders, and finally begging for the payment to be released, when their reply was that they would clear the invoice ’soon’. So, I refused to deliver any further work until it was cleared. In response, I was accused of blackmailing them. Wow. I think my male colleagues would have gotten a different response to this, but being a woman, clients seem to feel that they can say pretty much anything to me. None of my male colleagues have ever been been accused of ‘blackmail’, even though they have laid similar ultimatums to get invoices cleared.

I’d like to know how many people would show up for work if they weren’t paid for 3 months? How long can you extend your credit line at a grocery store before they finally pull the plug on you? How many months can you default on loan or credit card payments before you’re blacklisted by a bank? Where in the world can you expect continued services from a vendor without payment, except, apparently, in Pakistan?

Ironically, payment issues seem to arise on small amounts, not the big cheques. And, it’s always the big companies that think making payment to vendors is a non-issue. My smaller clients are prompt, and understand where I can or cannot offer discounts or deals with costs. The big clients want a deal on EVERYTHING - they want huge discounts, and aren’t willing to give up anything in return.

And why, oh why, is it a matter of shame to ask for payment? We’re not an honest nation - let’s face it. We’ve had corrupt, selfish rulers because of who we are, not because we’re unlucky. Considering the amount of ‘black money’ in the market, and the common theory that you can’t do business here without bribing someone, or getting involved in underhand dealings, why is it considered petty to be concerned about remuneration?

Why is it okay for a client to demand work, but not okay for a vendor to demand payment? Where did this double standard arise from, and what will it take to tear it apart? And how far do you think this corporate culture will take our businesses?

One Comment

  1. June 8, 2008 at 1:46 pm | Permalink

    It’s common business tactic in Pakistan - they don’t pay until literally forced to.

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