| Pages in topic: < [1 2 3] > | Current affairs: Greek companies defaulting on their payments Thread poster: Roman Lutz
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Balasubramaniam L. wrote:
I have several clients (agencies) in Portugal and Spain and I am keeping my fingers crossed that Greece won't have a domino effect and the EU won't start to unravel. If that happens, the next to be affected would be Portugal and Spain, and I am a bit worried on that account. I have already taken steps to diversify and reduce my dependence on these clients.
France and Italy too are in bad shape. Unemployment and public debts and deficits are out of control in these four countries. It's so amusing to hear heads of governments berating Greece for having to respect the rules when virtually nobody else in the eurozone has been respecting the euro Stability Pact, and Germany was one of the first countries to breach it. France has kept asking the EU for exceptions for several years because their deficit and debt are far outside the Stability Pact's limits, and every time they have been given a deadline for fixing the problems, when the deadline expired, they had to ask for a later deadline. Even when the euro was created, most of the countries didn't fulfil the entry criteria, and massive accounting fudges took place to make it look as if they did. Everybody knew, but the euro is a political project, so it had to go ahead at all cost. The IMF too has been violating their own rules when bailing out Greece, as it should have been a condition that Greece's currency be devalued. The IMF also stepped out of their mandate by having as their first priority to save the euro instead of Greece. This is openly admitted today. The IMF was not created to save the euro but to help countries in difficulties.
Balasubramaniam L. wrote:
Would it help to speak to someone higher up in the agency than PMs and ask them directly what they anticipate the situation is likely to be and whether they would be able honour payment commitments? From what you mention in your post, the client appears to be above board and is faced with a situation beyond his control. He might share his honest opinion and even tip you as to what you should do. Even otherwise, by talking to him, and framing your questions judiciously, and by listening more that yourself talking, you can get many insider perceptions about how the situation may pan out.
I think many clients will defend their own countries' positions out of national pride. They may even feel insulted that you question if they will be able to pay. Nothing unusual in that, but it isn't very helpful for you. Diversifying outside the EU is the only immediate solution I can think of. My guess is that things will get worse in the EU in the coming years. There are more and more internal tensions in the EU, both on the economic and political front, and our political leaders are mainly ignoring them; hence nothing is solved.
| | | | Dan Lucas 
United Kingdom
Local time: 18:59
Member (2014)
Japanese to English
| When in doubt, diversify | Jul 9, 2015 |
Thomas T. Frost wrote:
Diversifying outside the EU is the only immediate solution I can think of.
Exactly this, although it takes time.
A few days back another forum member argued that they would never deal with Japanese clients given that most - not all - Japanese clients have payment terms of 50 or 60 days. And the rates in Japan are seldom that good anyway.
But most Japanese clients - again, not all - are also polite, reliable and efficient, in addition to which their presence diversifies my client base away from the US, UK and Europe. So I deliberately maintain good relationships with a small number of Japanese customers.
Reading this forum it seems that many translators do understand that allowing one client to dominate your orders is unwise. Equally, if you allow a single region to dominate your orders you could end up in serious trouble if there's a regional crisis, or if a currency swings against you. The latter can happen almost overnight.
Regards
Dan
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Dan Lucas wrote:
A few days back another forum member argued that they would never deal with Japanese clients given that most - not all - Japanese clients have payment terms of 50 or 60 days. And the rates in Japan are seldom that good anyway.
But most Japanese clients - again, not all - are also polite, reliable and efficient,
If one's cash flow allows it, then a long payment deadline that is respected is preferable to a short deadline that isn't, in my view at least. I guess we all know certain countries where late payment comes up again and again, leading to wasted time for sending reminders to more or less sulking clients who in their own regions take it for granted that they can pay whenever they like. Long deadlines only work if inflation is negligible, though. I'm presently unable to detect any inflation here in Germany, and I keep track of all sorts of prices. Nothing has moved for over a year (there are a few exceptions, but where some prices have increased slightly, others have gone down). I can't even get 1 % interest on a savings account, so adding a month to the payment deadline only costs me 0.07 % of the amount. That is €0.67 on a €1000 invoice.
The euro is a type of monetary experiment that has never before in history been successful anywhere, and for good reasons. The differences between the many eurozone members are simply tearing the euro apart slowly but steadily, because the internal, fiscal transfers that are needed between regions to have rich regions compensate for poor regions are banned in the eurozone.
As there are no Treaty provisions for leaving the euro, the rules are made up as they go along. Hence, anything can happen. If it is suddenly decided to impose a one-off 10 % 'tax' or haircut on all euro accounts in the EU to pay for the Greek tragedy, as some leaders have suggested a while ago ( http://www.keeptalkinggreece.com/2013/10/16/does-imf-plans-super-tax-of-10-on-all-eurozone-savings-to-solve-national-debt-problems/ ), then it's too late to move one's money out of the euro and out of the EU. The dollar isn't necessarily a better bet when one looks at the skyrocketing American debt and the over-leveraged Federal Reserve that could easily become insolvent. The intrusive FATCA regulations have also made it a risky business to deal with the US, as it doesn't take much of a mistake to incur severe penalties.
[Edited at 2015-07-09 16:10 GMT]
| | | | ahartje
Portugal
Local time: 18:59
Member (2006)
German to Portuguese
+ ...
| Supporting Sheilas reply | Jul 9, 2015 |
I'm 100% with Sheila!
Not paying is one thing, not answering another!
I work(ed) with several trustful clients, who are sometimes late payers. No big deal, IF THEY ARE EXPLAINING THE SITUATION!
Vanishing for good (or bad) is no solution I do accept!
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I have just applied for a job with an agency based in Greece with one recent very negative review about non-payment.
I do feel for them, but I also have to pay my bills, therefore I might have to ask for advance payments in small junks?
[Edited at 2015-07-09 17:19 GMT]
| | | | Tom in London
United Kingdom
Local time: 18:59
Member (2008)
Italian to English
[Edited at 2015-07-09 17:51 GMT]
| | | | Dan Lucas
United Kingdom
Local time: 18:59
Member (2014)
Japanese to English
| Forex is a problem | Jul 9, 2015 |
Thomas T. Frost wrote:
If it is suddenly decided to impose a one-off 10 % 'tax' or haircut on all euro accounts in the EU to pay for the Greek tragedy, as some leaders have suggested a while ago then it's too late to move one's money out of the euro and out of the EU.
Thomas, even if you can find a suitable currency in which to transfer some of your money, the other problem is that during such crises any related currencies are going to be very volatile.
You could easily lose 10% of your money on shifts in the exchange rate - in which case you might as well have kept your funds in euros and accepted the tax.
Regards
Dan
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Why don't you give them a call?
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| Bad payers, slow payers, non payers... | Jul 10, 2015 |
I do understand the problem some Greek agencies are facing now, and the impact this has on our lives (those, like me, who have been working with Greece), but unfortunately bad payers, slow payers and non-payers are everywhere these days: my only late payer right now is… a German agency!
I do agree wholeheartedly with Sheila’s comment: being late is one thing, not answering that’s another whole kettle of fish!
| | | | | are you serious? | Jul 10, 2015 |
Gabriele Demuth wrote:
I have just applied for a job with an agency based in Greece with one recent very negative review about non-payment.
why would you do that?
| | | | | I really did like the job | Jul 10, 2015 |
Giovanni Guarnieri MITI, MIL wrote:
Gabriele Demuth wrote:
I have just applied for a job with an agency based in Greece with one recent very negative review about non-payment.
why would you do that?
But I am aware it would be very risky without advance payment. Will see, they are still trying to get their jobs outsourced, but how many translators will give them credit and risk not being paid?
And there was only one negative review dated 6 July!
[Edited at 2015-07-10 13:34 GMT]
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Gabriele Demuth wrote:
But I am aware it would be very risky without advance payment.
That's the only way to go... 
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Tom in London
United Kingdom
Local time: 18:59
Member (2008)
Italian to English
Gabriele Demuth wrote:
...advance payments in small junks...
[Edited at 2015-07-10 14:56 GMT]
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Tom in London wrote:
Gabriele Demuth wrote:
...advance payments in small junks...
The President of the European Commission is Mr Juncker, and Greek bonds have junk status, so why not collect in junks?
Collecting in junks would help you get 'liquid assets' before 'channelling' funds home.
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