Company thats paying later and later...does that mean they are going under? What happens if they do?

I'm sure you have all seen the thread about the company that used to pay 45-60 days after the shop, then 75 days after the last day of the month that the shop was completed, and now 90 days after the last day of the month that the shop was completed.

Someone in the thread mentioned that it might be a sign that a company is going under. If that happened, what recourse would we have to get our reimbursements/wages?

I'm worried about HS Brands, but I'm writing this post as a general question too. I know it was a huge fiasco last year when Red Quanta didn't pay for a long time. I just don't want us shoppers to have to eat the cost and not get paid in case a company flops.

Create an Account or Log In

Membership is free. Simply choose your username, type in your email address, and choose a password. You immediately get full access to the forum.

Already a member? Log In.

There are too many examples of companies that have gone under, and then you don't, won't get paid. If you feel that this is happening, stop working for the company, or offer to take another job but let them know that you cannot complete the job, without getting paid first. Follow your instincts, most companies, can easily pay within 30-45 days, but they don't/won't because they don't have to if people are willing to wait while they collect interest.
It's not wages, it's fees.

But you have a valid concern.

I haven't shopped for HS since early this year, but not because it took so long to get paid. It was because the schedulers were totally unresponsive, so I couldn't work the shops I wanted into routes.

Several companies have gone under owing shoppers money.

Paying late was something every single one of those companies did before they failed.

In the broader world, yes, a company failing to pay timely is an indication that something is bad wrong somewhere. And some companies do fail.

I would certainly stop shopping for any company that I had grave doubts about.
As long as I can remember (I’ve shopped 20 years) HS brands has always been a 90 day pay. I don’t ever remember 30-45 with them.
Plus, they are reliable.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.
@Traveliz wrote:

As long as I can remember (I’ve shopped 20 years) HS brands has always been a 90 day pay. I don’t ever remember 30-45 with them.

I also remember a long history of 90-day pay from HS Brands. They were always my slowest. They briefly got faster which rather shocked me although I certainly liked it. Then about the time they lost their longtime movie client, they got slower again. I can understand why a relatively newer shopper, who maybe started shopping during the HS Brands "fast" period, might feel that they were suddenly paying very slow. But, yeah, they've always been slow and they've always been very reliable.

But anyone who is nervous should back away. There have been many companies that have gone bust owing shoppers money. Some shoppers lost a LOT of money when Freeman and Associates went bust. But Freeman had been a "slow-pay" for years. The most recent I remember was National Shopping Service. It was a longtime, very reliable company with a very visible CEO, Matt Wozniak. After Wozniak's sudden death, the company fell apart within months. Pay got later and later and the employees continued to schedule shops right up until the end. The company went into bankruptcy, and, while there was some money to be divided, shoppers got nothing. If a company flops, the shoppers usually lose whatever fees and reimbursements they are owed.
@roflwofl wrote:

After Wozniak's sudden death, the company fell apart within months. Pay got later and later and the employees continued to schedule shops right up until the end. The company went into bankruptcy, and, while there was some money to be divided, shoppers got nothing. If a company flops, the shoppers usually lose whatever fees and reimbursements they are owed.

Actually, NSS was already showing signs well before Mr Wozniak’s death. There were times when the phones were not being answered during business hours, but many didn’t bat an eyelash at that. Why? I don’t know. Also, their paydays drifted from the end of the next month after jobs were completed to...well after that.

I jumped ship because I didn’t care to get shops rejected over pictures, then resubmitting the exact same pics and getting OKed. Waste of my time and fishy business to me. I think my last deposit from them was the first time they lagged on payouts.

So, OP, buyer beware, keep your eyes peeled, etc. if there’s no secret pot of gold to collect from, you’re SOL.

Edited 2 time(s). Last edit at 11/03/2019 12:05AM by AlfredB1979.
First and foremost, you are getting fees as an independent contractor, not wages as an employee. If a company for which you are a contractor goes bankrupt, then you become an unsecured creditor (for both fees and reimbursements). How much an unsecured creditor gets from a bankrupt company depends on each individual company, the lawyers, the judges, etc, but it is often pennies on the dollar.
@chiffon cupcakes wrote:

Someone in the thread mentioned that it might be a sign that a company is going under. If that happened, what recourse would we have to get our reimbursements/wages?

Shopping Southeast Pennsylvania, Delaware above the canal, and southwestern NJ since 2008
Some years ago, I performed shops for a company that seemed to specialize in grocery stores. The shop took about an hour, the report, another 30 minutes and worst of all, it paid $15 after a 60 day period. Often, they would ask me to do the shop for a $5, then $10 and, finally a $15 bonus. When I asked for a $25 incentive, they balked, saying it was too much. So, I made my "business decision". I didn't take the assignment and stopped doing them altogether. The pay for the amount of work wasn't worth it and the waiting period to be paid was too long.

Weeks, and months went by and I noticed that the grocery shops were going unassigned. Seems other shoppers were making the same "business decision".

I've made decisions like that for other MSCs. To me, its just "business".
My #1 company for years was NSS, after his death things fell apart, I don't remember ever having a fee denied or late before his death....Many did not get paid money owed, for me it was only 60.00, but I still miss them.
Companies can have a difficult month which doesn't mean everything's going wrong, but if your worried, just don't take jobs from them. I won't do reimbursement oly jobs and have to wait a long time to get paid, one reason I like The Source, they pay twice a month like clockwork, even with low fee's, it a good thing.

Live consciously....


Edited 1 time(s). Last edit at 11/04/2019 01:14AM by Irene_L.A..
What did your post say? Although I guess I shouldn't ask because it might get deleted again.

@BusyBeeBuzzBuzzBuzz wrote:

Why was my post in this thread deleted? As far as I recall, I did not break any forum rules.
And thanks to everyone your replies. I did join HS Brands around the time that they started paying faster so when they recently went back to the normal 90 day schedule it took me by surprise.

I went through the threads on this forum about NSS and that was an eye opening situation. Wow. Thanks again for your stories and advice.
@chiffon cupcakes wrote:

What did your post say? Although I guess I shouldn't ask because it might get deleted again.

@BusyBeeBuzzBuzzBuzz wrote:

Why was my post in this thread deleted? As far as I recall, I did not break any forum rules.

I posted about my experience with HS Brands in terms of payment history and also why I stopped shopping for it.

It irks me that the post is not only deleted but there is no trace of it. I would much rather see the contents of a post removed but with an explanation from a moderator in the post explaining why.
As an independent contractor on a cash basis, you really don't have a recourse unless you take them to court. You cant take the loss against income
Irene suggests--Companies can have a difficult month which doesn't mean everything's going wrong, but if your worried, just don't take jobs from them.

Bob agrees--Now folks, that is logic and much far time beneficial than weeping, wailing and/or gnashing your teeth. In addition, it also applies to rock bottom fees; just let them be completed by those for whom the need exists.
Busy Bee, I have had this happen to me where my post went missing and then hours later it might show up in a completely different order than when I wrote it. I find that very strange.
About Irks...and I know I am off the exact topic...what irks me is all the shoppers who continually complain about the company that pays in one week when they are one day late. Yes, I think they should relax the high bar they set for themselves so as not to have this happen. I can understand that there are instances where I week may be a challenge for some shops to be paid. Stuff happens! But instead of thanking your lucky stars you work for a company that pays in one week, or even 8-10 days I see lots of complaints and bashing of that company. I understand that some of you have bills to pay and are living very close to the edge but if you just set your expectations of pay with a bit of leeway for payments being a few days late at times then you will not run into your own issues with paying your bills on time.
On topic there are most likely companies that lose a good client and therefore that affects their cash flow for a few months. This does not mean that company is going under but if they attract new clients it might take a while for them to repair their cash flow issues. Some companies are working on a thin margin. They should notify us if there is something holding up their payments to us as a heads up.
As for NSS, I am with Irene. I was never paid late until the death of the owner.

Buzz buzz wrote:
I posted about my experience with HS Brands in terms of payment history and also why I stopped shopping for it.

It irks me that the post is not only deleted but there is no trace of it. I would much rather see the contents of a post removed but with an explanation from a moderator in the post explaining why.[/quote]
@walesmaven wrote:

Plus, they are reliable.

But show a lack of respect for shoppers. Unlike a company like IPSOS which is always trying to pay shoppers faster. We are their IC's, of course, but we are also their customers in a sense.
Sorry, only registered users may post in this forum.

Click here to login